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Forms of Business Organization | Introduction to Finance| CPA Exam BEC Ch 1 pt2

Forms of Business Organization | Introduction to Finance|  CPA Exam BEC Ch 1 pt2 My website:
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Large firms in the United States, such as Ford and Microsoft, are almost all organized as corporations. We examine the three different legal forms of business organization—sole proprietorship, partnership, and corporation—to see why this is so. Each form has distinct advantages and disadvantages for the life of the business, the ability of the business to raise cash, and taxes. A key observation is that as a firm grows, the advantages of the corporate form may come to outweigh the disadvantages.

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