A growing pizza restaurant was originally formed as a sole proprietorship because it was based on the owner's family recipe. The restaurant has become so popular that several wealthy people have inquired about investing money to help the business open more locations. If the owner had known there would be an opportunity to sell shares of the company in exchange for investment capital, which form of business would he have chosen?
A) syndicate
B) partnership
C) joint venture
D) corporation

Question

Quizplus · Accepted Answer

A corporation is the best choice because it allows for the sale of shares to investors in exchange for investment capital, which would help the business expand. It also provides limited liability protection for the owner and potential shareholders. A syndicate is a group of individuals or organizations that come together for a specific purpose, and a joint venture is a partnership for a specific project or venture. While a partnership can also sell shares, it would not provide the same level of limited liability protection as a corporation.

A Growing Pizza Restaurant Was Originally Formed as a Sole