Question

Doug grew up on a large farm in southwest Wisconsin. As a college graduation gift, Doug’s father gave him several hundred acres of land to raise organic soybeans, grain, and corn. Doug works the fields by himself, negotiates deals with buyers, repairs equipment, and handles all the accounting and financial issues for the business, which is called The Natural Element.

Answer 1

Answer: Sole Proprietorship.

Explanation:

This question wants to know what type of business is described in the scenario.

In a Sole Proprietorship, the owner of the business is essentially the business itself. They control all aspects of the business from the operating activities to the financial activities of the firm. This is usually the first stage business type in an entrepreneurship.

The definition of a sole proprietorship above fits with what Doug does. Doug is the owner of the farming business and seems to be handling all aspects of it by himself. This would therefore make it a sole proprietorship.