Final answer:
The main forms of business organization are sole proprietorships, partnerships, and corporations, each with specific characteristics regarding control, liability, and taxes. Therefore correct option is B
Step-by-step explanation:
The principal forms of business organization in the United States are: sole proprietorships, partnerships, and corporations. Each of these types of business ownership has its own unique features and implications for the way the business is run and taxed.
A sole proprietorship is the simplest and most common form of business organization. It's a business owned and operated by one person, making it easy to start and control. However, the owner is also personally responsible for all debts and liabilities of the business.
Partnerships involve two or more people who own and operate a business together. This allows for shared responsibility and profit, but like sole proprietorships, partners are personally liable for business debts.
Corporations are more complex and are legal entities separate from their owners. This provides the advantage of limited liability for the owners, but corporations require more extensive record-keeping, operational processes, and potentially higher taxes.