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Which of the following forms of business entities generates \( 90 \% \) of business revenues in the United states: a. Proprietorships :. b. Partnerships c. Manufacturing companies d. Corporations

Ask by Gibbs Harper. in the United States
Jan 23,2025

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Corporations generate 90% of business revenues in the United States.

Solution

The correct answer is: **d. Corporations** **Explanation:** In the United States, corporations are the dominant form of business entity when it comes to generating revenue. While sole proprietorships and partnerships make up a significant number of businesses, especially small and medium-sized enterprises, corporations account for the vast majority of business revenues. This is primarily because corporations often have greater access to capital, can scale operations more effectively, and benefit from various structural advantages that facilitate large-scale revenue generation. Manufacturing companies, while important, represent a specific industry sector rather than a form of business entity. The distinction between business types (like manufacturing) and business entities (like corporations) is crucial. Among the forms of business entities listed—proprietorships, partnerships, and corporations—corporations are responsible for generating approximately 90% of business revenues in the United States. **Additional Context:** - **Corporations** benefit from limited liability, the ability to raise capital through stock issuance, perpetual existence, and centralized management, all of which contribute to their revenue-generating capacity. - **Sole Proprietorships and Partnerships** are typically smaller in scale and may have limitations in raising capital and scaling operations compared to corporations. - **Manufacturing Companies** are a subset of the broader category of corporations and other business entities. Their contribution to business revenue is significant but falls under the larger umbrella dominated by corporations. **References:** - U.S. Census Bureau data on business types and their economic contributions. - Small Business Administration (SBA) reports on business entity distributions and revenue statistics.

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Bonus Knowledge

Did you know that corporations, despite often being a smaller percentage of total businesses, generate a whopping \( 90\% \) of business revenues in the United States? This is largely due to their ability to scale operations, attract investment, and access wider markets. Think of big names like Apple and Amazon, which are structured as corporations and dominate the economic landscape! On the flip side, while sole proprietorships and partnerships are more common, they typically handle far less revenue. This is a classic case of “more is not always merrier”—small businesses are vital for innovation and employment but may lack the infrastructure to rake in the big bucks compared to their corporate counterparts.

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