Sam and Nina want to start a dry-cleaning service and need to decide on the best form of business ownership, based on their respective abilities and the kind of business they want to run. They could either jointly own the business as a partnership, or one of them could own it as a sole proprietorship. Which of the following, if true, would weaken the case for Nina running the business as a sole proprietorship?

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Quizplus · Accepted Answer

The best choice is D, because if Sam is anxious to take on a lead role in the business, it would make more sense for them to form a partnership. This would allow each partner to bring their respective skills to the table and share the responsibilities of running the business. While Nina's background in accounting and her parents' experience in the dry-cleaning industry are valuable assets, they are not necessarily strong arguments for or against either ownership structure. Similarly, Nina having the initial idea to start the business is not a decisive factor in determining the best form of ownership. Finally, while it is true that Sam lacks dry-cleaning experience, this does not necessarily rule out the possibility of a partnership.

Sam and Nina Want to Start a Dry-Cleaning Service and Need