Stefan has inherited a large amount of money and decides he wants to start a skateboard shop. He has money to invest up front, b
ut he lacks business expertise. Which of the following would be his best business options, depending on what he is willing to risk? Corporation or sole proprietorship
Limited liability company or corporation
Partnership or limited liability company
Sole proprietorship or partnership
Partnership or limited liability company is the correct answer.
Explanation:
For this explanation, it is necessary to point out some characteristics of Stefan: first of all, he doesn't have business expertise, which could be found with a partnership. Also, limited liability companies offer low risk, specially if it goes bankrupt because the money the owner has doesn't go to liquidation. Due to this, letter B is the correct answer.
<span>Lowest risk would be a corporation. He probably wouldn't even need the money then- maybe convince his co-workers that this is a great idea. But he would have no ownership of the company, just the idea-presuming he patented it.
The area of a triangle is given by A= base x height. Its base is X feet so A=X x height. We need to find the height. The height is 6 times the base (X) + 1 because it's one more than that. So now the equation is A= X(6X+1). We can distribute the X to get A= 6 +X.
+X.