Which one of the following is true: Corporations are the most common form of bus

Question

Which one of the following is true: Corporations are the most common form of business organization in numbers but not (the largest) in terms of revenue generated (Money) Sole Proprietorships are the most common form of business organization in numbers but not in terms of revenue generated (Money) Partnerships are the most common form of business organization in numbers but not in terms of revenue generated (Money) None of the Above All of the following are advantages of being a "Franchisee" EXCEPT: You are dealing with a known product and brand name Profits are "reasonably" predictable You have Freedom to operate as your "own business" without the involvement or control of the Franchisor In the Martin vs. McDonald's Corporation case The Hamburgler was finally caught and convicted Ronald McDonald was arrested for "Public Indecency" McDonald's level of control as Franchisor held them responsible for negligence and failure to protect the safety of the Franchisee employees McDonald's, as a disconnected Franchisor, was held to only be a "financial Investor" in the Franchise and was held not negligent because they owed no duty to the Franchisee Natalie and Nick form a partnership selling widgets... Everyone needs one, they seem to be mentioned in all the economics textbooks. There is no formal agreement, they each participate in the management of the widget selling enterprise. They buy the raw materials and each sell them. Nick is better at selling than Natalie. Nick sold 100 widgets and made a profit of $700 while Natalie spent $1700 on materials and sold nothing. Last year, they Lost $1000 (one thousand dollars). With respect to this loss How much is Natalie and Nick responsible for. Nick $0, Natalie $ 1000 Nick $300, Natalie $700 Nick $500, Natalie $500 Nick $200, Natalie $800

Explanation / Answer

Option B is correct

Sole proprietorship businesses are easier to open without any legal or contractual difficulty. It needs the lowest amount of capital and it can be operated even from home. This is why anyone can think of opening a sole proprietorship business. Since this business is opened at a very small scale and limited to a particular geographic area, the amount of revenue generated is very small.

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