Which form of organization offers the ease of formation and dissolution? A. Sole proprietorship B. Partnership C. Limited liability partnership (LLP) D. Public limited company (PLC)
Question
Which form of organization offers the ease of formation and dissolution? A. Sole proprietorship B. Partnership C. Limited liability partnership (LLP) D. Public limited company (PLC)
Solution
The form of organization that offers the ease of formation and dissolution is A. Sole proprietorship.
Here's why:
A. Sole Proprietorship: This is the simplest form of business organization. It is easy to form and dissolve as it involves just one person who is the sole owner of the business. There are no legal formalities for the formation and dissolution of a sole proprietorship.
B. Partnership: A partnership involves two or more people who agree to share in the profits or losses of a business. It requires a partnership agreement, and dissolving it can be complex if there are disagreements among the partners.
C. Limited Liability Partnership (LLP): An LLP is a partnership in which some or all partners have limited liabilities. It requires a formal agreement and registration process, making it more complex to form and dissolve.
D. Public Limited Company (PLC): A PLC is a type of public company under UK law, some Commonwealth jurisdictions, and the Republic of Ireland. It is a limited liability company whose shares may be freely sold and traded to the public. The formation and dissolution of a PLC involve complex legal procedures.
Similar Questions
Which form of organization offers limited liability to its owners but is not a separate legal entity? A. Limited partnership B. Sole proprietorship C. Partnership D. Public limited company (PLC)
Which form of organization provides limited liability to its owners and allows for easier transfer of ownership? A. Sole Proprietorship B. Partnership C. Corporation D. Limited Liability Partnership
Which form of organization has a perpetual existence regardless of the changes in its ownership? A. Corporation B. Partnership C. Limited liability partnership (LLP) D. Sole proprietorship
In which form of organization, ownership is easily transferable through buying and selling of shares? A. Public limited company (PLC) B. Sole proprietorship C. General partnership D. Limited liability partnership (LLP)
Which form of business organization has a separate legal entity?a) Sole proprietorshipb) Partnershipc) Companyd) Joint Hindu family business
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.