Question

Kara wants to build a business. She has plenty of capital and potential investors and partners. She wants to avoid the burden of sole liability for her business and wants to be able to close the business when she is no longer interested in it. Which of the following would lead Kara to choose a sole proprietorship organization for her business?

a. Avoidance of sole liability
b. Plenty of capital
c. Many potential investors/partners
d. Ability to close the business easily

Answer 1

Ability to close the business easily

Step-by-step explanation:

Answer 2

The correct answer is B.

Step-by-step explanation:

The fact that Kara has plenty of capital means she most likely would not need financial intervention from any other party.

It is not logical for her to bring in a partner who will share profits when she has invested all the capital. Because she will enjoy all the proceeds from the business alone, she will also bear all liabilities.

Cheers!