Question

Christopher started a tutoring website. After a few months, a publishing company files a lawsuit against his company for copyright infringement. Christopher had to close his business and sell all of the business's assets and his car in order to settle the lawsuit. This is an example of?
A. Corporation
B. Partnership
C. Proprietorship
D. LLP/LLC

Answer 1

Answer:

C. Proprietorship

Explanation:

A sole proprietorship business is a type of business that is owned by a single person and as such their profits are taxed once as personal income tax.

Basically, it is a type of business that is typically owned by an individual or one person and as such is solely responsible for its debts.

In this scenario, Christopher started a tutoring website and was later sued for copyright infringement by a publishing company.

As a result, Christopher had to close his business and sell all of the business's assets, including his car in order to settle the lawsuit. Thus, this an example of sole proprietorship business because he's only one that own the business and as such would bear the burden of any debt or liability alone.