Ranking Business Organizations by Degree of Decision-Making Power for a Single Owner
Rank the business organizations from HIGHEST to LOWEST degree of decision-making for a single owner
A) Corporation -- Sole Proprietorship -- Partnership
B) Sole Proprietorship -- Corporation -- Partnership
C) Sole Proprietorship -- Partnership -- Corporation
D) Partnership -- Corporation -- Sole Proprietorship
Question:
What is the correct ranking of business organizations from highest to lowest degree of decision-making for a single owner?
Answer:
The correct ranking is C) Sole Proprietorship -- Partnership -- Corporation.
This is the option that best ranks business organizations from highest to lowest on the degree of decision-making power. In a sole proprietorship, a single person owns the company, and therefore, has full power to make all the decisions. In a partnership, ownership is shared among various partners. Finally, a corporation is an organization that is owned by a group of people. Therefore, this is the system that has the most people involved in decision-making.