Types of Business Organizations and Their Revenue Distribution
The Most Common Types of Business Organizations
Sole proprietorships, partnerships, and corporations are the most common types of business organizations. Each type has its own advantages and disadvantages, depending on factors such as liability, taxation, and management structure.
Revenue Distribution among Business Organizations
In terms of revenue distribution, sole proprietorships receive 90% of all revenue in total sales. This is due to the fact that sole proprietorships are often small businesses owned and operated by a single individual. While partnerships and corporations may generate higher revenue in some cases, sole proprietorships remain the most common type of business organization in terms of revenue share.
Why are sole proprietorships the most common type of business organization in terms of revenue distribution?Answer: The answer is C.
Explanation: Sole proprietorships receive 90% of all revenue in total sales due to their prevalence among small businesses owned and operated by a single individual.