Final answer:
Tracy's Trikes exemplifies an employee-owned business, where employees have a stake in the company's creative endeavors. For Berkeley's new retail business, she could consider a sole proprietorship, partnership, or corporation, based on her risk tolerance and business goals.
Step-by-step explanation:
Tracy's Trikes believes that each employee should enjoy the idea of working on something that is new, creative, or personally meaningful. This approach suggests that Tracy's Trikes exemplifies the category of an employee-owned business. Employee-owned businesses prioritize cooperative ownership and operate with the principle that all employees have a stake in the success and creativity of the endeavor.
When considering the type of business structure Berkeley should choose for her new retail business targeting tourists, she could opt for a sole proprietorship, which is often chosen by new businesses. A sole proprietorship is easy to establish and gives her complete control over the business decisions. However, it also means she would be solely responsible for all debts and liabilities.
Other options Berkeley could consider include a partnership, if she plans to run the business with one or more co-owners, or a corporation if she aims to separate personal and business liabilities and raise capital through the sale of shares. The best choice would depend on her specific circumstances, including her willingness to take risks, manage liabilities, and her plans for involvement in the business's daily operations.