Asked by Morghan Graper on May 22, 2024
Verified
Statement I.More firms are proprietorships than are partnerships and corporations combined.
Statement II.Nearly all corporations are very large firms.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Proprietorships
The simplest form of business organization owned by a single person, responsible for all the business’s operations and liabilities.
Partnerships
A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.
- Comprehend the characteristics and structures of different business entities (proprietorships, partnerships, corporations, S corporations).
Verified Answer
AR
Adrian RickettsMay 22, 2024
Final Answer :
A
Explanation :
Statement I is true as there are far more sole proprietorships than partnerships and corporations. Statement II is false since there are plenty of smaller corporations and not all corporations are very large.
Learning Objectives
- Comprehend the characteristics and structures of different business entities (proprietorships, partnerships, corporations, S corporations).