Question

Richard runs a small convenience store in his neighborhood. He hires two part-time workers to help him with the day-to-day operations of the business. However, Richard alone is responsible for all the debts and liabilities of the business. Thus, Richard's business is an example of a(n) _____.
A.cooperative
B.sole proprietorship
C.franchise
D.S corporation
E.joint venture

Answer 1

Answer: B) Sole proprietorship

Explanation:

Sole proprietorship is the business term in which any business is managed by any individual where he/she is responsible for paying debts and damages.It is also known as sole trader.This business does not fall under legal enterprise.

According to the question,Richard is running business in form of sole proprietorship as Richard, himself is operating his store with help of two worker and in-charge for paying debt for the store.

Other options are incorrect because cooperation, joint venture, franchise and s-corporation requires legal terms to be operated.Thus, the correct option is option(B).