Which organizational form best enables the owners of a firm to monitor the professional conduct of each other owners of the firm?
A) Sole proprietorship
B) Partnership
C) Private corporation
D) Public corporation

Question

Quizplus · Accepted Answer

In a partnership, there is a relatively small number of owners, and they often work closely together. This allows for a higher degree of monitoring of each other's professional conduct. Additionally, partnerships typically have clear agreements and expectations for how the owners will behave professionally, and there may be provisions for addressing any disputes or violations. In contrast, the owners of corporations (private or public) are often more dispersed and detached from each other, making it more difficult to monitor each other's conduct. Sole proprietorships have only one owner, so there is no need to monitor the conduct of other owners.

Which Organizational Form Best Enables the Owners of a Firm