Question

Autumn wants to start a business. She has two goals. First, she doesn't have much money but she's ready to get business up and running with the least possible hassle and expense. Second, she wants to minimize her personal risk in the event that her company experiences difficulties. If Autumn chooses a sole proprietorship, she would:________

a. Meet her first goal since sole proprietorships are easy and inexpensive to form. However, she would expose herself to personal risk because owners of sole proprietorships have unlimited liability.
b. Achieve her second goal, since the owners of sole proprietorships are legally protected from losing more than the amount they invest in their company. However, she would find that the start-up costs would be higher than if she had incorporated her business.
c. Achieve both goals since this form of ownership is both the easiest to form and the least risky.
d. Not achieve either goal since proprietorships are both costly to set up and subject to unlimited liability.

Answer 1

a. Meet her first goal since sole proprietorships are easy and inexpensive to form. However, she would expose herself to personal risk because owners of sole proprietorships have unlimited liability.

Step-by-step explanation:

A sole proprietorship is A from of business which is owned by one person. The owner has unlimited liabilities which means she is liable for the debts of the company.

A sole proprietorship is very easy to set up and cheap to set up.

Therefore, autumn would achieve her first goal but not her second goal.

I hope my answer helps you