Question

Alejandro would like to start a new business. His friends have suggested he go into merchandising. But he’s confused about what exactly merchandising is. Which sentence provides Alejandro with the most accurate description of merchandising?

Answer 1

Merchandising involves selling and promoting products, and entrepreneurs like Berkeley may choose from several business structures, such as sole proprietorship, partnership, or LLC, based on their personal risk tolerance and business goals.

Step-by-step explanation:

Alejandro, merchandising is a business activity that involves promoting and selling products to consumers. In a broader sense, it encompasses the selection, display, and marketing of products to encourage sales in a retail setting. For your friend Berkeley, who is opening a new retail business selling local products to tourists in the summer, there are several business structures she can consider. As an entrepreneur recognized for being a self-starter, independent, hard-working, and willing to take risks, she might consider either a sole proprietorship, a partnership, or even an LLC (Limited Liability Company). Each of these have their unique benefits and drawbacks. A sole proprietorship is simple to establish and gives her complete control but also means personal liability for business debts. A partnership allows collaboration and shared resources but can lead to disputes if not carefully managed. An LLC provides liability protection and flexibility but might have more complex requirements. Berkeley should choose the structure that best matches her business goals and risk tolerance.