Explain the various factors on which several forms of business exist.
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The factors which affect the choice of the form of business organisation are given below:
Nature of business: ADVERTISEMENTS: ...
Size and area of operations: ...
Degree of control desired: ...
Amount of capital required: ...
Degree of risk involved: ...
Division of surplus: ...
Duration of business: ...
Government regulation and control:
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The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure
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