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The most popular form of business organisation is for large scale business activities:
  • a)
    Sole proprietorship
  • b)
    Company
  • c)
    Partnership
  • d)
    None of the above
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
The most popular form of business organisation is for large scale busi...
Introduction:
The most popular form of business organization for large-scale business activities is a company. A company is a legal entity that is formed by a group of individuals or entities to carry out business activities. It is a separate legal entity that can own property, enter into contracts, and sue or be sued in its own name.

Reasons for the popularity of companies:
There are several reasons why companies are the most popular form of business organization for large-scale business activities:

1. Limited liability:
One of the main advantages of a company is limited liability. The liability of the shareholders is limited to the amount they have invested in the company. This means that the personal assets of the shareholders are protected in case the company incurs losses or faces legal liabilities.

2. Perpetual existence:
A company has perpetual existence, which means that it continues to exist even if the shareholders change or pass away. This provides stability and continuity to the business, allowing it to make long-term plans and investments.

3. Easy transferability of shares:
Shares of a company can be easily transferred from one shareholder to another. This allows for easy entry and exit of shareholders, making it easier to raise capital and attract investors.

4. Access to capital:
Companies have various options to raise capital, such as issuing shares or borrowing from financial institutions. This allows them to undertake large-scale business activities and invest in expansion and growth.

5. Professional management:
Companies often have a separate management team that is responsible for day-to-day operations. This allows for specialized skills and expertise in managing the business, leading to efficient and effective decision-making.

6. Credibility and trust:
Companies are subject to regulatory requirements and are required to comply with various laws and regulations. This provides credibility and trust to customers, suppliers, and investors, which is especially important for large-scale business activities.

Conclusion:
In conclusion, companies are the most popular form of business organization for large-scale business activities due to their advantages such as limited liability, perpetual existence, easy transferability of shares, access to capital, professional management, and credibility. These factors make companies an attractive choice for entrepreneurs and investors looking to undertake large-scale business activities.
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Community Answer
The most popular form of business organisation is for large scale busi...
Correct option is B.
Private limited companies or LLCs are commonly chosen by businesses due to the following reasons:
Limited Liability: One of the primary advantages of a private limited company or LLC is that it provides limited liability protection to its owners. The personal assets of the owners are separate from the company's liabilities, reducing personal risk.
Flexibility in Ownership: Private limited companies or LLCs offer flexibility in ownership and can have multiple owners or shareholders. The ownership shares can be easily transferred or allocated among the owners, allowing for changes in ownership structure as the business evolves.
Separate Legal Entity: A private limited company or LLC is considered a separate legal entity distinct from its owners. It can enter into contracts, own assets, and engage in legal proceedings in its own name, enhancing business credibility and continuity.
Tax Advantages: Private limited companies or LLCs often provide tax advantages and flexibility in terms of tax planning and optimization. Depending on the jurisdiction, they may offer tax benefits or the ability to choose between different tax regimes.
Access to Funding and Investors: Private limited companies or LLCs have greater ease in raising funds compared to other forms of business organization. They can issue shares to attract investments from external sources, including venture capitalists, angel investors, or private equity firms.
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The most popular form of business organisation is for large scale business activities:a)Sole proprietorshipb)Companyc)Partnershipd)None of the aboveCorrect answer is option 'B'. Can you explain this answer?
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