Chapter 8, Problem 13AA

To determine

To evaluate the most common form of business organizations.

Explanation of Solution

The different kinds of entrepreneurs are comprises of Sole Proprietorship, Partnership, Corporation, and Limited Liability Company.

One person who declared the earnings on a personal income-tax return holds a sole proprietorship. where as A partnership is more than two people to supervise business activities and share their income and obligations. All the members share both assets and Common Relationship Liabilities. Corporations possess much of individuals' rights and responsibilities, can also entering into contracts, lend and borrowing funds and prosecute, hire workers, own properties, and pay taxes. And a limited liability corporation is a legal arrangement where proprietors are not directly responsible for the debts or liabilities of the company. Limited liability partnerships are hybrid companies which combine a company's characteristics with those of a corporation or sole proprietorship.

Economics Concept Introduction

Introduction:   The word enterprise organization explains how organizations are organized and how their structure helps them achieve their objectives. Enterprises are usually structured to either produce income or enhance society.