Review the pie graphs on Page 120. The graph on the left shows that of all the b
ID: 2328356 • Letter: R
Question
Review the pie graphs on Page 120.
The graph on the left shows that of all the businesses in the United States only 20% are corporations.
The graph on the right shows that corporations generate 81% of the business revenue in the United States.
In ONE WORD, can you tell why 20% of the businesses are able to generate 81% of the business revenue? After your one word answer, please elaborate on what is it about the corporate form of business organization that causes this to happen?
Answer in the Text Box and submit.
Percentage of Total Receipts Sole proprietorships Partnerships 13% 6% Percentage of Businesses : Corporations 20% Partnerships 0% Sole proprietorships 72% Corporations 81%Explanation / Answer
The Major cause is that corportions have presence all over the country and also across the world and due to which they have international presence and have vast maket area and customer base which increases the revenue of the corporations. Apart from the higher revenue, scare resources can be easily availed which wil reduce the cost of product.
On the other hand other businesses like sole properitership or partnership form of business have limited area for operations and which results in low revenue and high cost of production.
This is the main reason due to which 20% corporation hold more than 81% of business revenue.
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