Nick wants to start his own business. Nick should consider a sole proprietorship if he:
A) expects rapid growth and wants 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

Nick should consider a sole proprietorship if he wants to be his own boss and can accept unlimited liability. A sole proprietorship is a type of business structure where the owner is personally liable for all debts and obligations of the business. This means that the owner's personal assets, such as their home and car, can be used to pay off business debts if the business is unable to do so. However, owning a sole proprietorship means that Nick will have complete control over his business and will not have to share profits or decision-making power with others. Additionally, starting a sole proprietorship is generally less expensive and involves less paperwork than other types of business structures.

Nick Wants to Start His Own Business