Business Organizations and Partnership Formation Quiz

The common classifications of business organizations include sole proprietorship, partnership, corporation, and cooperative.

The law requires a minimum of two persons to constitute a partnership.

The law does not specify a maximum number of persons for a partnership.

<p>It is considered sound practice to organize a corporation when there are five or more persons desiring to form a business.</p> Signup and view all the answers

<p>It is not applicable to form a corporate business when a business is a professional partnership of CPAs in order not to impair the independence of CPAs.</p> Signup and view all the answers

<p>Two persons</p> Signup and view all the answers

<p>When there are five or more persons</p> Signup and view all the answers

<p>Five persons</p> Signup and view all the answers

<p>To maintain the independence of CPAs</p> Signup and view all the answers

<p>Trust and confidence</p> Signup and view all the answers