Charles wants to start a décor business and takes a loan of $35,000 from the bank to set up the business. Once the business is up and running, Charles will have full control of the business and its profits. However, he will also be responsible for any losses that the business incurs. In this scenario, which of the following forms of business ownership is Charles planning to start?
A) A limited liability company
B) A corporation
C) A limited partnership
D) A sole proprietorship

Question

Quizplus · Accepted Answer

Charles is planning to start a sole proprietorship, as he will have full control over the business and its profits, and he will also be personally responsible for any losses.

Charles Wants to Start a Décor Business and Takes a Loan