Nick wants to start his own business. Nick should consider a sole proprietorship if he:
A) Expects rapid growth and want to be able to raise a large sum of money.
B) Wants to make it easy to attract qualified employees.
C) Wants to be his own boss and can accept unlimited liability.
D) Wants to minimize the financial risk he must accept as the owner of a business.

Question

Quizplus · Accepted Answer

A sole proprietorship is a type of business structure where the owner is personally liable for all business debts and obligations. This means that if the business is sued or cannot pay its debts, the owner's personal assets (such as their house, car, and savings accounts) may be at risk. However, a sole proprietorship is ideal if Nick wants to be his own boss and have complete control over his business without having to answer to other shareholders or partners. It also allows for the flexibility to make quick decisions and changes without having to consult with anyone else.

Nick Wants to Start His Own Business