Asked Jan 22, 2020

Identify the three common forms of business organization and the primary difference between the way they are accounted for.


Expert Answer

Step 1

Three common forms of business organization are:

  • Sole proprietorship: It is one form of simple business that is owned and maintained by a single person. Set up of very simple and taking care of business is very easy. Government provides tax advantages for these firms.
  • Partnership: Partnership firms are started by two or more individuals joining together. This form of partnership is very easy to establish and there is a shared control. The duties and formalities of the concern are formalized by making a partnership agreement. In this type of company, ind...

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