Which type of business organization typically involves higher start-up costs?

• A. Corporation
• B. Partnership
• C. Sole proprietorship
• D. Limited liability partnership (LLP)

Answer: (A)

Verified step by step guidance

1. Understand the characteristics of each type of business organization: Corporation, Partnership, Sole Proprietorship, and Limited Liability Partnership (LLP).
2. Recognize that corporations typically involve higher start-up costs due to legal requirements such as registration, incorporation fees, and compliance with regulatory standards.
3. Compare the start-up costs of other business types: Partnerships and Sole Proprietorships generally have lower costs because they require fewer legal formalities and simpler structures.
4. Note that Limited Liability Partnerships (LLPs) may have moderate start-up costs, as they require registration but are less complex than corporations.
5. Conclude that corporations are the type of business organization that typically involves higher start-up costs due to their complex legal and financial structure.