Question

Tiffany graduated from college and needed to decide where she wanted to work. She had several options. Her aunt Martha owned and operated a small business that she started about twenty years ago. Martha, an individual owner of her business, informed Tiffany that she could work for her. On one hand, Tiffany thought it would be a great opportunity to be able to work for her aunt, learn the business, and then run the business when her aunt retires. On the other hand, she also felt that she wanted something a little more challenging; a job where she could really use her education. Her other option would be to work for a company that a friend and her husband had started and jointly owned. It was a rapidly growing company with plenty of opportunity for advancement. However, Tiffany had some reservations about this choice because she was not sure she wanted to work for friends. Her last option was to work for a large retail company, headquartered in Maryland, which had stores across the United States. ​ After much consideration, Tiffany decided she didn't want an opportunity and a job because someone knew her. She wanted to prove how motivated and hardworking she was. Once she weighed all the advantages and disadvantages of her different options, she decided to work for the large retail company so that she could gain the most experience for herself. Refer to Tiffany's Dilemma.Based on the information provided,what type of business does Tiffany's aunt operate?A) Incorporation.B) Partnership.C) Franchise.D) Corporation.E) Sole proprietorship.

Answer 1

Answer:

Based on the information provided,what type of business does Tiffany's aunt operate?

E) Sole proprietorship.

Explanation:

A sole proprietorship is the simplest and most common type of business in the US. Generally sole proprietorships are small businesses, family owned and operated. A sole proprietorship is owned by a single person, in this case aunt Martha. This type of business is considered a pass through entity since it is not taxed directly, instead the owner is taxed. The main disadvantage of sole proprietorships is that the owner is personally liable for all the company's obligations.