Which of the following types of businesses is most common in the United States?

Which of the following types of businesses is most common in the United States?

A) Corporations,

B) Cooperatives,

C) Sole proprietorships,

D) Limited partnerships,

E) General partnerships.

Answer: C) Sole proprietorships

Small business employers are commonly sole proprietorship businesses in the United States. A sole trader is a business which is managed by one person who is legally and personally responsible for the business and for all the liabilities that come with the business.

Hence sole trader business entities are common because; they are easy and cheap to establish, the owner controls and makes decisions on the business and has little legal formalities. The owner takes all revenue and keeps all the profit; however, he or she is legally responsible for all the business liabilities.

The major type of business entity is sole trader non-holders, but they have fewer numbers of employees than corporate or partnership entities. Small retail shops, service providers, and various freelance activities can be started as sole trader businesses because they are very easy to establish and register as well as they have negligible costs of setup.