Question

Fred is starting a software writing company. He is the owner and has only three employees. He wants a simple, inexpensive form of ownership that leaves him in control and that he can quickly dissolve if he decides to change to another business. His best choice of ownership would be ________.

Answer 1

Answer:

Sole proprietorship.

Explanation:

The best property choice for Fred's business would be a sole proprietorship.

This corresponds to a popular commercial form due to the simplicity of business operations, ease of implementation and relatively low cost.

In the sole proprietorship, a single owner will be able to register the name of his business (which can be the name of the owner or a fictitious name) and obtain the necessary licenses for the start of operations. It is an easy way to start a new business without the greatest risks found in some type of business partnership, since in exclusive ownership, the business responsibilities are solely of the owner, including gains and losses.