Question

Cal sells "DownSize," a weight-reduction program, from a Web site, in competition with Eat-Less Inc.'s product "Fit 'n Trim." Eat-Less files a suit against Cal, alleging in part that he is a sole proprietor, but his enterprise should be deemed a different form of business. Cal's enterprise should most likely be considered a corporation because:
a. DownSize is sold online.
b. a franchisee because DownSize is sold in competition to Fit 'n Trim.
c. a sole proprietorship because Cal is a sole proprietor.
d. no form of business entity because Cal has no formal organization.

Answer 1

Answer:

c. a sole proprietorship because Cal is a sole proprietor.

Explanation:

Cal sells "DownSize," a weight-reduction program, from a Web site, in competition with Eat-Less Inc.'s product "Fit 'n Trim." Eat-Less files a suit against Cal, alleging in part that he is a sole proprietor, but his enterprise should be deemed a different form of business. Cal's enterprise should most likely be considered a corporation because Cal is a sole proprietor and his enterprise is likely to be considered as sole proprietorship.