Question

Jovi's Corner, a toy store, abruptly closes down after the death of its owner. Without an heir or an experienced person to manage the store, Jovi's Corner is shut down, and the property is sold off to another party. The profits are donated to an orphanage. In the given scenario, Jovi's Corner is most likely an example of a _____.

Answer 1

Answer: The correct answer is "sole proprietorship".

Explanation:  The profits are donated to an orphanage. In the given scenario, Jovi's Corner is most likely an example of a sole proprietorship.

Clearly Jovi's Corner is an example of sole proprietorship since at the death of its owner there was no heir to manage the store or any partner or employee who had sufficient capacity and interest to continue managing the store.

Answer 2

Answer:

The correct answer is: sole proprietorship.

Explanation:

A sole proprietorship is not considered an entity. Sole proprietorship refers to the fact that a person owns a business and is fully liable for its operations. Sole proprietorships do not continue operations after the decease of the owner when the proprietorship loses all its value.