Arianne has a passion for designing clothes and decides to open her own clothing store. She starts it by taking personal loans from family and friends, and hires a few people to run the store She maintains a tight control over costs as she does not want to incur further debts. Arianne's store is an example of a _____.

Question

Quizplus · Accepted Answer

A sole proprietorship is a business owned and operated by one person. In Arianne's case, she is the sole owner of her clothing store and has taken personal loans from family and friends to finance her business. She has also hired a few employees to help her run the store. As a sole proprietor, Arianne has complete control over the business and is personally responsible for all debts and obligations of the business.

Arianne Has a Passion for Designing Clothes and Decides to Open