Marco wishes to be able to run his new business the way he wants and be his own boss. He also wants to keep all of the aftertax earnings for himself. Which of the following forms of business ownership would be most suitable for Marco?
A) Limited partnership
B) Limited liability company
C) C corporation
D) Sole proprietorship

Question

Marco wishes to be able to run his new business the way he wants and be his own boss. He also wants to keep all of the after­tax earnings for himself. Which of the following forms of business ownership would be most suitable for Marco?
A) Limited partnership
B) Limited liability company
C) C corporation
D) Sole proprietorship

Quizplus · Accepted Answer

A sole proprietorship is the only form of business ownership where the owner has complete control over the business and keeps all after-tax earnings. Limited partnerships have at least one general partner who is responsible for the management and can be held liable, while limited liability companies and C corporations have multiple owners and may have to pay out some earnings to shareholders or members.

Marco Wishes to Be Able to Run His New Business