Question

The basic concepts of financial management are the same for all businesses, regardless of how their organized. However, a firms legal structure affects its operations. The main forms of business organizations are: 1) proprietorships, 2) partnerships, 3) corporations, and 4) limited liability companies (LLCs) and limited liability partnerships (LLPs). Businesses are frequently started as ____ and then convert to _____ when their growth results in disadvantages outweighing advantages.

a) proprietorships
b) partnerships
c) corporations
d) limited liability companies/partnerships

Answer 1

The main forms of business organizations are proprietorships, partnerships, corporations, and limited liability companies (LLCs) and limited liability partnerships (LLPs). Businesses are frequently started as proprietorships and then convert to corporations when their growth results in disadvantages outweighing advantages.

Step-by-step explanation:

The main forms of business organizations are: 1) proprietorships, 2) partnerships, 3) corporations, and 4) limited liability companies (LLCs) and limited liability partnerships (LLPs). Businesses are frequently started as proprietorships and then convert to corporations when their growth results in disadvantages outweighing advantages.