Eve runs a yoga studio. She is considering expanding her operation, but to do so, she needs to double the size of her existing building. She is concerned that her insurance will increase significantly due to the increased exposure to liability. And she alone would bear the burden of that if an accident were to occur. Based on the above information, Eve's studio should be considered a _____ and the decision to expand a _____ decision.

Question

Quizplus · Accepted Answer

Eve's concern about bearing the burden of increased insurance alone indicates she is the sole owner, making her business a sole proprietorship. The decision to expand involves a significant change in the business's size, indicating it is a long-run decision.

Eve Runs a Yoga Studio