Question

Larry Linsuine is thinking of marketing a new idea he has been using. After years of experience as a deer hunter, he has perfected a tree stand that gives him an added advantage in deer hunting. He calls his new tree stand The Tree Hugger. He has now begun the process of manufacturing his tree stands with 20 employees working out of his garage. His life savings have provided the equity for his operation.

What type of business is Larry beginning?
a. large business
b. joint venture
c. small business
d. none of these

Answer 1

Larry is beginning a small business, manufacturing tree stands called The Tree Hugger with 20 employees working out of his garage.

Step-by-step explanation:

Larry is beginning a small business. Small businesses are typically owned by one or a few individuals and have a limited number of employees. In this case, Larry is manufacturing his tree stands with 20 employees working out of his garage. He is using his life savings as equity to fund his operation, which is a common characteristic of small businesses.