Which of the following form of business organization is least regulated?
Correct answer: C. Sole-proprietorship
- A. Limited Partnership
- B. General Partnership
- C. Sole-proprietorship
- D. Corporation
Explanation
A sole proprietorship has one owner and is generally subject to fewer formation, reporting and regulatory requirements than partnerships or corporations. A corporation is usually the most regulated form.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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