Question

Jonathan intends to have maximum control over his decisions in his business. Which of the following forms of business organizations is most likely to give Jonathan total control over his business decisions?

a) Partnership

b) Corporation

c) Limited Liability Company

d) S Corporation

e) Sole Proprietorship

Answer 1

Jonathan will have the most control over his business decisions if he opts for a sole proprietorship, as it allows him to be the sole decision-maker and retain all profits.

Step-by-step explanation:

Jonathan will have maximum control over his business decisions if he chooses a sole proprietorship. This business structure offers him total authority without the need to consult partners or shareholders.

In a sole proprietorship, Jonathan would own and operate his business, with the right to make all decisions and keep all profits. However, this also means he would bear all the risks, and his personal assets would potentially be exposed to business liabilities. Other options like a partnership would require Jonathan to share decision-making with partners, while a corporation would involve a board and shareholders who might influence decisions.

An LLC provides more protection to personal assets but still requires some formalities that can limit autonomy. An S Corporation also has a more complex structure, potentially diminishing Jonathan's direct control.