Question

ut he lacks business expertise. Which of the following would be his best business options, depending on what he is willing to risk? Stefan has inherited a large amount of money and decides he wants to start a skateboard shop. He has money to invest up front, but he lacks business expertise. Which of the following would be his best business options, depending on what he is willing to risk?
a. Corporation or sole proprietorship
b. Limited liability company or corporation
c. Partnership or limited liability company
d. Sole proprietorship or partnership

Answer 1

Corporation or sole proprietorship would be his best business options, depending on what he is willing to risk.

 

A corporation is a legal entity that is separate and distinct from its owners. Corporations enjoy most of the rights and responsibilities that an individual possesses; that is, a corporation has the right to enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes.

 

The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.

 

The correct answer between all the choices given is the first choice or letter A. I am hoping that this answer has satisfied your query and it will be able to help you in your endeavor, and if you would like, feel free to ask another question.

Answer 2

I believe the answer is: C, Partnership or limited liability company

It is mentioned that Stefan lack business expertise, because of this, partnership would be a good option for him since he can seek a partner to cover for his lack of expertise.

Limited liability company tend to be chosen because of its low risk. When a limited liability company went bankrupt, the wealth that personally owned by the owners is not subjected to liquidation.