Final answer:
George is an entrepreneur for starting a new deli. Berkeley, similarly an entrepreneur, should consider various business structures, such as sole proprietorship, partnership, or corporation, based on her goals and liability preference.
Step-by-step explanation:
George, by opening a new deli, is taking on the role of an entrepreneur, which means he's someone who identifies a market opportunity and decides to start a business to capitalize on it. Entrepreneurs are characterized by their willingness to start new ventures, take risks, and be self-starters. Berkeley, likewise being an entrepreneur, must decide on the appropriate business structure for her retail business selling local products.
When considering which business structure to choose, Berkeley has several options:
- Sole proprietorship: A simple structure with one owner responsible for all aspects of the business, including liabilities.
- Partnership: An arrangement where two or more people share ownership and the responsibilities that come with it.
- Corporation: An entity that separates the business’s liabilities from its owners.
Each business structure has its own implications for risk, control, taxation, and complexity. Berkeley should choose the structure that best aligns with her goals, resources, and willingness to share control and responsibilities. A sole proprietorship or a partnership could offer more control and simplicity, but with personal responsibility for business liabilities. Conversely, a corporation, though more complex to establish and operate, provides protection from personal liability.