Final answer:
The primary task of a startup is to search for a scalable, repeatable, and profitable business model. While other business activities are important, identifying and refining a viable market offering is fundamental to a startup's success. Startups often start with a sole proprietorship but can choose from various structures as they grow. The correct answer is option A.
Step-by-step explanation:
The primary task of a startup is to search for a scalable, repeatable, and profitable business model. This involves identifying a unique business idea, validating it in the market, and refining the business processes to ensure they can grow and sustain profitability over time. While writing an elaborate business plan and executing a well-established business model are important steps, they are not the primary task for a startup. Startups typically begin with limited financial resources and need to establish a market presence and customer base.
A franchise is a different approach where the franchisee purchases the right to operate a business using the franchisor's model, with ongoing support. In a sole proprietorship, one individual owns and operates the business, which is a simple and common structure for new entrepreneurs. Each business structure, including partnerships, corporations, and Limited Liability Companies (LLCs), offers different advantages and disadvantages in terms of liability, taxation, and control.
For a new retail business like Berkeley's, she must choose a structure that suits her needs. As an entrepreneur, she may opt for a sole proprietorship due to its simplicity and full control, but as the business grows, she might consider other structures for more protection and capital-raising options. Early-stage financial capital is critical for startups, often coming from private investors due to their higher risk tolerance and ability to provide better terms than public markets.