Question

I need some clarification.

Most American businesses are this form of business sole proprietorship Limited liability encourages investors to invest large amounts of money in this form partnership of business It is argued that this form of business contributes the most to increases in the corporation nation's output (GDP) Ownership is distributed among a small number of people. This type of business is partnership subject to unlimited liability. corporation Shareholders are the owners of this form of business. Answer Bank sole proprietorship partnership corporation

Answer 1

1 - Most of the businesses in US are owned and operated by the single and sole owner who manages all the working hence he is the sole proprietor.

2 - Limited liability partnership does not put risk on the personal assets of investor , hence it is more favoured by them.

3 - Corporations have huge capital outlays, they have huge turnovers , pay high taxes, and hence they contribute the most to GDP.

4 - In partnership there are a small number no. Of people who agree to share the profits and losses of business in a certain agreed ratio.

5 - Shareholders are considered as a the owners of corporation because they lend their monet through the shares to companies who run their operations through this money.