Question

Ellen started a catering business, but soon decided that catering was too stressful for her. She could close her business relatively easi
and retum to school because the business was a
a. producer cooperative.
C. sole proprietorship.
b. general partnership.
d. closely held corporation.
Please select the best answer from the choices provided

Answer 1

Answer:

Option C is the right answer.

Explanation:

There are many disadvantages attached to this kind of business. Less capital is involved. Decision making lies in the single hand and when the debt increases, there are many chances of losing the business.

Interest to promote the business fades away and at the end they leave the business due to instability of work and personal commitments.

Proprietors are wholly accountable for the arrears they incur. Initial capital can be raised by the owner but the funds required to run the business is not possible inn this kind of business.