GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Dan has $5, 000. He wants to invest his money in the type of business that has the least amount of liability. In which type of business should he invest?
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corporation
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partnership
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proprietorship
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None of the above
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Explanation:
Detailed explanation-1: -A sole proprietorship-also referred to as a sole trader or a proprietorship-is an unincorporated business that has just one owner who pays personal income tax on profits earned from the business. Many sole proprietors do business under their own names because creating a separate business or trade name isn’t necessary.
Detailed explanation-2: -The correct answer is d. In law, it is regarded as having a separate existence from its owners. Limited liability company means that the owners are not personally liable anymore of the company’s debts because that company has separate existence from them.
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