If the Corporate Form of Business Organization Has So Many

question 228

Essay

If the corporate form of business organization has so many advantages over the corporate form, why is it so common for small businesses to initially be formed as sole proprietorships?

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Definitions:

Financial Commitment and Risk

Refers to the obligation of allocating resources with the possibility of incurring losses in financial transactions or investments.

Exporting

The act of selling goods or services produced in one country to buyers in other countries.

Direct Investment

The purchase or acquisition of a controlling interest in foreign business enterprises.

Direct Investment

The purchase or acquisition of a controlling interest in foreign business enterprises, leading to influence or management rights.