Scenario - Holly and Trent
While many others dreamed about owning their own business, Holly Gabrel decided to do something about it. Holly knew that being self-employed required long hours and hard work, but with the help of her husband, Trent, Holly was positive that the hours and the work would be rewarded. First, she and Trent developed a new concept in sunglasses that could be used by athletes better than the sunglasses now on the market. Holly and Trent obtained a patent on their invention, and began production and marketing.
-If the business is legally Holly's, then the business form would be
A) proprietorship.
B) partnership.
C) corporation.
D) chapter S42.5.
E) None of these.

Question

Quizplus · Accepted Answer

As the business is legally owned by Holly, and there is no mention of any other partners or shareholders, it can be assumed that the business is a proprietorship. This is the simplest and most common form of business ownership, where the owner has complete control and is personally responsible for all debts and obligations of the business.