Multiple Choice
Which of the following would an entrepreneur typically do first when starting a new business venture?
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1. Introduction to Accounting
Business Organization
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Which legal form of business ownership does the government have the least control over?
A
Corporation
B
Sole proprietorship
C
Partnership
D
Limited liability company (LLC)
Verified step by step guidance1
Understand the legal forms of business ownership: Sole proprietorship, Partnership, Corporation, and Limited Liability Company (LLC). Each has different levels of government control and regulation.
Recognize that a sole proprietorship is the simplest form of business ownership. It is owned and operated by one individual, and there are minimal legal requirements to establish and operate this type of business.
Compare the government control over other forms of business ownership: Corporations and LLCs require formal registration, compliance with state and federal regulations, and periodic reporting. Partnerships may also require agreements and some level of oversight depending on the jurisdiction.
Identify that sole proprietorships have the least government control because they do not require formal registration (beyond local business licenses) and have fewer regulatory requirements compared to other forms of business ownership.
Conclude that the correct answer is Sole Proprietorship, as it is the legal form of business ownership with the least government control.
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