Rocky Rhodes is convinced that he has a great idea for a new business. Unfortunately, the type of business he wants to start would require a fairly high initial investment and Rocky has a poor credit rating and very little personal wealth. Rocky would be unlikely to find success if he organized his business as a sole proprietorship.

Question

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As a sole proprietorship, Rocky would be personally responsible for all the financial obligations and liabilities of the business. With a poor credit rating and little personal wealth, it would be difficult for him to secure the necessary funds for a high initial investment. Therefore, organizing his business as a sole proprietorship would make it unlikely for him to find success.

Rocky Rhodes Is Convinced That He Has a Great Idea