Question

Format of business is determined by:

• A. Size
• B. Location
• C. Study
• D. None of these

Hint:

Small business → Proprietorship; Medium → Partnership; Large → Corporation.

Answer 1

The Correct Option is A

Step 1: Understanding business format.
The format or structure of a business refers to how it is organized—whether as sole proprietorship, partnership, or corporation.
Step 2: Influence of size.
The size of a business (small, medium, or large) determines its operational format.
For example, small businesses often choose simpler structures like sole proprietorships, while large firms prefer corporations for scalability and legal benefits.
Step 3: Elimination of other options.
(B) Location: Affects accessibility but not the format.
(C) Study: Refers to analysis, not business structure.
(D) None of these: Incorrect, as size directly influences the format.
Step 4: Conclusion.
Hence, the format of a business is determined by its size.