Question

Suppose that shortly after graduating from college you decide to start your own business. Assuming you are starting a small business and realize that you need someone with particular expertise or business skills, which category of firm are you most likely to start?A. Sole proprietorship. B. Partnership. C. Corporation. D. All of the above are equally alike. E. A and C are more likely than B.

Answer 1

Answer:

Partnership

Explanation:

A partnership is a business established by two or more people, who are co-owners of the partnership.

Some of the advantages of setting a partnership over a sole proprietorship are:

1. greater financial capability since all the co-owners invest in the partnership instead of just the sole proprietor
2. the skills and expertise of the partners can be combined

Some of the advantages of setting a partnership over a corporation are:

1. Much easier and less expensive to setup and organize
2. A partnership is a more personal business, it's your business, not someone else's