Maurice and Stanley's train store has grown to the point that they need more capital to expand the current location and to open stores in other cities. They do not want the liability of taking out a loan and are no longer concerned about government oversight but would still like to maintain limited liability. They would most likely form a
A)corporation.
B)sole proprietorship.
C)syndicate.
D)co-op.

Question

​Maurice and Stanley's train store has grown to the point that they need more capital to expand the current location and to open stores in other cities. They do not want the liability of taking out a loan and are no longer concerned about government oversight but would still like to maintain limited liability. They would most likely form a
A)​corporation.
B)​sole proprietorship.
C)​syndicate.
D)​co-op.

Quizplus · Accepted Answer

Forming a corporation would provide limited liability while also allowing them to raise capital by selling shares of stock. This would allow them to expand the business without taking on personal debt or risking personal assets. A sole proprietorship or syndicate would not provide limited liability, and a co-op may not be the most effective structure for their growth plans.

​Maurice and Stanley's Train Store Has Grown to the Point

Maurice and Stanley's Train Store Has Grown to the Point