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Which form of business ownership is typically the easiest to dissolve?
Practice Questions
Q1
Which form of business ownership is typically the easiest to dissolve?
Sole proprietorship
Partnership
Corporation
Limited liability company
Questions & Step-by-Step Solutions
Which form of business ownership is typically the easiest to dissolve?
Steps
Concepts
Step 1: Understand what a sole proprietorship is. It is a type of business owned and run by one person.
Step 2: Recognize that in a sole proprietorship, the business and the owner are the same legal entity.
Step 3: Realize that because the business is tied directly to the owner, when the owner decides to stop the business, it can be done easily.
Step 4: Compare this to other business types, like partnerships or corporations, which have more complex legal requirements to dissolve.
Step 5: Conclude that a sole proprietorship is typically the easiest form of business ownership to dissolve.
No concepts available.
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