Question

Inez is a sole proprietor/owner of New Tech, a computer and IT consulting business. Her clients are small to medium sized businesses, colleges, and individual home users. Inez wants to expand her business, buy new equipment, and hire an employee. She needs to obtain additional capital to expand New Tech, but she does not want to lose control of the business. Also, Inez has chosen not to take out any sort of loan or use a credit card to obtain additional capital to expand.

As a sole proprietor, what is her best option to obtain additional capital to expand and yet retain control of the business? Why? Inez realizes she may need to change her form of business entity. What can she do in order to expand her business and keep control of it, while incurring no new debt. Analyze each option Inez may have and use your critical thinking to show which option would be her best choice to meet her objectives.

Answer 1

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