Question

multiple choice 4 points
part 2: interpreting graphs
using the exhibit, choose the letter of the best answer.
if a firm has no employees, what form of business organization is it most likely to have?
sole proprietorship
partnership
limited partnership
corporation

Explanation:

A sole proprietorship is a business owned and operated by one person. It is the simplest form of business organization. In many cases, a sole proprietor may start a business on their own without immediately hiring employees. Partnerships (including limited partnerships) involve at least two owners, and while they may start small, the nature of a partnership implies a relationship between partners which might be less likely to have "no employees" as a common starting - point compared to a sole proprietorship. Corporations, on the other hand, are more complex legal entities. They often have a more formal structure and may be created with the intention of growth and potentially having employees from the start (even if it's a small number). Also, looking at the pie - chart, the category with the highest percentage (40.1%) is likely to be the most common form. Sole proprietorships are the most numerous form of business organization in the US, which aligns with the idea that a firm with no employees is most likely a sole proprietorship.

Answer:

sole proprietorship