Your dad inherits $100,000 and wants to invest these funds for their retirement. They are very concerned about business continuity and want to be able to pass on this investment to the next generation of the family. Which of the following investment opportunities would not be appropriate for them?
A) Common stock of McDonald's Corporation
B) Food truck business operating as a sole proprietorship
C) Limited partner in a real estate limited liability company
D) Stock of British Petroleum, public limited company (PLC)

Question

Quizplus · Accepted Answer

The food truck business operating as a sole proprietorship would not be appropriate because it heavily relies on the individual owner for its operation and continuity. This structure may not easily allow for the passing of the business to the next generation, especially in comparison to the other options which are more structured and have mechanisms in place for ownership transfer and continuity.

Your Dad Inherits $100,000 and Wants to Invest These Funds