Anja wants to start a business, but she is unsure of the legal form best for her. Short of cash, she has decided to take the form that is the least expensive and most flexible in terms of decision making. She is not worried about liabilities because the business is small and she's personally insured. What type of business best fits Anja's needs?
A) joint venture
B) partnership
C) sole proprietorship
D) corporation

Question

Quizplus · Accepted Answer

A sole proprietorship is the least expensive and most flexible legal form of business. It is also easy to set up, since there are no legal requirements or formalities. Furthermore, a sole proprietor has complete control over the business, and can make decisions quickly and easily. However, the downside is that the proprietor is personally liable for all the debts and obligations of the business, which may put her personal assets at risk.

Anja Wants to Start a Business, but She Is Unsure