The three primary types of business organization are proprietorship, partnership, and corporation.
Each type has characteristics that distinguish it from the other types. In the left column of the following table, write the name of the type of business organization that is most likely to possess the characteristic described in the right column of the table. The first item is shown as an example.

Transcribed Image Text:

Business Type Characteristic Proprietorship Offers the highest level of control over operating decisions The business dissolves with the death of its only owner Has a retained earnings account on its balance sheet Has two or more owners who are not stockholders Profits benefit a single individual Frequently uses legal agreements to define profit distribution for two or more owners Most highly regulated form of business Subject to double taxation Has multiple capital accounts but no retained earnings account on its balance sheet Provides the best opportunity to benefit a few people Has only one capital account on its balance sheet Provides for easy transfer of ownership Owned and operated by a single individual Offers the least capacity to raise capital Provides the greatest capacity to raise capital Least regulated form of business One owner may be held personally liable for actions taken on behalf of the business by a different owner Usually operated by a professional management team that is separated from the owners