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? 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?

ACorporation or sole proprietorship
BLimited liability company or corporation
CPartnership or limited liability company
DSole proprietorship or partnership

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.

andriansp andriansp · Answer 2 · 2018-07-28T22:36:45-04:00

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.