Question

Stefan has inherited a large amount of money and decides he wants to start a skateboard shop. He has money to invest up front, but he lacks business expertise. Which of the following would be his best business options, depending on what he is willing to risk?

Corporation or sole proprietorship
Limited liability company or corporation
Partnership or limited liability company
Sole proprietorship or partnership

Answer 1

Lowest risk would be a corporation. He probably wouldn't even need the money then- maybe convince his co-workers that this is a great idea. But he would have no ownership of the company, just the idea-presuming he patented it.

Answer 2

Partnership or limited liability company is the correct answer.

Step-by-step explanation:

For this explanation, it is necessary to point out some characteristics of Stefan: first of all, he doesn't have business expertise, which could be found with a partnership. Also, limited liability companies offer low risk, specially if it goes bankrupt because the money the owner has doesn't go to liquidation. Due to this, letter B is the correct answer.