Taraun has always dreamed of starting his own restaurant. He graduated from culinary school and has worked as an executive chef in several restaurants. Now that he is ready to open his own restaurant he realizes he will need some help. Taraun is obviously knowledgeable about all things culinary, but needs some help with management, marketing, and finance. Which of the following is the best choice for Taraun?
A) a partnership, because Taraun can purchase an existing restaurant and maintain all of the employees
B) a corporation, because it has perpetual life and the restaurant can stay open forever
C) a partnership, because it will combine the knowledge of multiple people
D) a sole proprietorship, because Taraun knows everything he needs to know about starting a restaurant

Question

Quizplus · Accepted Answer

A partnership would allow Taraun to combine his culinary knowledge with the expertise of others in management, marketing, and finance. He could choose partners who have experience in these areas to help him run a successful restaurant. Additionally, a partnership would allow for shared liability and potentially greater financial resources to invest in the restaurant.

Taraun Has Always Dreamed of Starting His Own Restaurant