Multiple Choice
Which type of business organization is typically the easiest and least expensive for a single owner to establish when getting a business up and running?
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1. Introduction to Accounting
Business Organization
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Which of the following is NOT a common way to become a business owner?
A
Becoming an employee of a corporation
B
Purchasing an existing business
C
Starting a new business from scratch
D
Inheriting a business
Verified step by step guidance1
Understand the context of the question: The problem is asking which option is NOT a common way to become a business owner. This requires analyzing each option provided and determining whether it aligns with the concept of business ownership.
Clarify the concept of business ownership: A business owner is someone who has legal ownership and control over a business entity, including its operations, assets, and liabilities. Common ways to become a business owner include purchasing an existing business, starting a new business, or inheriting a business.
Evaluate the first option: 'Becoming an employee of a corporation' does not involve ownership. Employees work for a business but do not have legal ownership or control over the business entity. This option is not a way to become a business owner.
Evaluate the second option: 'Purchasing an existing business' is a common way to become a business owner, as it involves acquiring ownership of an already established business entity.
Evaluate the third and fourth options: 'Starting a new business from scratch' and 'Inheriting a business' are also common ways to become a business owner, as they involve either creating a new business or receiving ownership of an existing business through inheritance.
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