Question

____________comprise about 20% of all businesses but account for about 80% of U.S. business receipts.

Select one:
a. corporations
b. partnerships
c. sole proprietorships
d. limited liability companies

Answer 1

Corporations make up approximately 20% of all businesses yet account for around 80% of U.S. business receipts due to their ability to grow significantly, attract investments, and their structure as separate legal entities from their owners.

Step-by-step explanation:

The correct answer to the question is corporations. Corporations comprise about 20% of all businesses but account for about 80% of U.S. business receipts.

This is largely because corporations are separate legal entities from their owners, often have a large number of resources and can raise capital by selling shares to the public.

This business structure allows them to grow significantly and take advantage of economies of scale, contributing to their high share of business receipts. Unlike sole proprietors or partnerships, corporations offer limited liability protection to their owners, which encourages investment and can lead to more robust business growth.