BF – Nov 2015 – L1 – SA – Q3 – Business and Organizational Structures and Choices

Deciding what factors are not to be considered when choosing a business form.

Question

Which of the following is NOT a factor to be considered when deciding the form of a business enterprise?
A. The degree of personal liability
B. The willingness to share decision making powers and risks
C. The cost of establishing the business
D. The location of the business
E. The legal requirements concerning the provision of public information

Answer

Explanation:
The correct answer is “D. The location of the business.”
Explanation: While location is important for business operations, it is not a direct factor when choosing the legal form of a business. Legal structure decisions focus more on factors such as liability, risk-sharing, and compliance with regulations.

Tags: Business, Decision Factors, Formation
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: NOV 2015

Uploader: Dotse