Scuffy the Tugboat is a family-run business that makes tugboats. It is owned by three brothers, Jack, Frank, and Bob. Their first tugboat is still towing ships in Boston Harbor, and over the years, success has allowed them to grow the company by plowing money back into it. Now, however, they want to expand but they are not sure how they should do this. They are also unsure about which legal form of organization is best for them.
-Scuffy the Tugboat could not operate as a sole proprietorship.

Question

Scuffy the Tugboat is a family-run business that makes tugboats.  It is owned by three brothers, Jack, Frank, and Bob.  Their first tugboat is still towing ships in Boston Harbor, and over the years, success has allowed them to grow the company by plowing money back into it.  Now, however, they want to expand but they are not sure how they should do this.  They are also unsure about which legal form of organization is best for them. 
-Scuffy the Tugboat could not operate as a sole proprietorship.

Quizplus · Accepted Answer

A sole proprietorship is owned by one person, making it impossible for a business owned by three brothers to operate as a sole proprietorship.

Scuffy the Tugboat Is a Family-Run Business That Makes Tugboats