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What's The Order of Business Types Based on Revenue?

Which of the following choices ranks the three business types in order from most revenue to least revenue produced annually?

A. corporation, sole proprietorship, partnership

B. sole proprietorship, partnership, corporation

C. corporation, partnership, sole proprietorship

D. partnership, sole proprietorship, corporation

Answer:

I am thinking that it is A: corporation, sole proprietorship, partnership.

When it comes to generating revenue, corporations usually top the list, followed by sole proprietorship and then partnership. This is because corporations have more shareholders and typically operate on a larger scale, leading to higher revenue.

Sole proprietorships, on the other hand, are businesses owned and operated by a single individual. While they can still generate substantial revenue, they typically have lower revenue compared to corporations.

Partnerships, where two or more individuals share ownership of the business, often have the lowest revenue among the three types. This is due to the shared profits and responsibilities among partners.

So, the correct order based on revenue would be A: corporation, sole proprietorship, partnership. Keep in mind that this ranking may vary depending on various factors such as industry, size, and location.