The Order of Difficulty and Expense, from Most to Least

question 67

Multiple Choice

The order of difficulty and expense, from most to least, when forming a business organisation is as follows:

• A) corporation, sole traders, partnership.
• B) corporation, partnership, sole traders.
• C) partnership, corporation, sole trader.
• D) partnership, sole trader, partnership.
• E) sole trader, partnership, corporation.

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Definitions:

Incentive

A factor, either monetary or non-monetary, that motivates individuals or organizations to act in a certain way or pursue particular objectives.

Artist

An individual who creates, practices, or demonstrates an art form, particularly in the visual, auditory, or performing disciplines, expressing creativity and skill.

Gallery

A room or building where art is displayed and sold, or a space for presenting other types of collections.

Moral Hazard

A situation in insurance and contracts where one party takes more risks because they know they are protected or that another party bears the costs of those risks.