GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Julie buys used clothes at garage sales and then auctions them off herself off the internet. Which type of business does she have?
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partnership
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proprietorship
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corporation
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conglomerate
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Explanation:
Detailed explanation-1: -Cons of a Sole Proprietorship: Owner has unlimited personal exposure to risk, as the owner is responsible for all liabilities incurred by the business. Investors typically would not invest in a business organized as a sole proprietorship.
Detailed explanation-2: -That is why a sole proprietor is less inclined to take risks in the form of innovation or expansion.
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