Question

Amanda has always been inclined toward baking and wants to open her own bakery. She takes a loan of $20,000 from the bank and starts a bakery in her hometown. In the context of the four forms of business, Amanda most likely _____. owns a limited liability company has a sole proprietorship owns a statutory close corporation has a general partnership

Answer 1

Limited Liability Company (LLC): This is a 'mix' between a corporation and a sole proprietorship. Most businesses that have an LLC are partnerships but sole owners can have this as well. There are tax break advantages with an LLC that are more comparable to a sole proprietorship. 
Sole Proprietorship: The most common type of business practice, one sole owner. 
Statutory Close Corporation: Stockholders are actively involved in managing the business.
General Partnership: Two or more people agree to share assets, profits and all legal matters within a business. 

Based on the differences between these types of business practices Amanda most likely has a Sole Proprietorship.