Lily wants to build a business. She has very little capital. She does, however, have a...

Question

Question

Lily wants to build a business. She has very little capital. She does, however, have a partner with which she could run a bus

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Option (c) is correct

Liittle capital of Lilly would lead her to choose a sole proprietorship organization for her business. A sole proprietorship can be started with a little capital.

Option (b) is incorrect as possession of a partner will not lead her to start sole proprietorship business. With partner, Lilly can start partnership.

Option (d) is incorrect avoidance of personal liability is not the reason because in sole proprietorship, Lilly will be personally liable for debts.

Add a comment

Answer 2

Similar Homework Help Questions

Lily wants to build a business. She has very little capital. She does, however, have a...

Lily wants to build a business. She has very little capital. She does, however, have a partner with which she could run a business. Lily wants to be able to avoid being held personally liable for any problems the business has. Which of the following would lead Lily to choose a sole proprietorship organization for her business? Little capital Possession of a partner Avoidance of personal liability None of the above J-Chron's board of directors periodically meets with the CFO...
Business Law II - Chapter 35 Forms of Business Organization Name Date Fill in cach blank...

Business Law II - Chapter 35 Forms of Business Organization Name Date Fill in cach blank with the exact legal term. 1. A business organization in which the owner has total control and unlimited personal liability is known as a 2. (True False) Opening a sole proprietorship requires many legal formalities. 3. In this type of partnership, the partners divide the profits (usually equally) and the management responsibilities and share unlimited personal liability for debts. 4. A partnership in which...
Business Law II - Chapter 35 Forms of Business Organization Name Date Fill in each blank...

Business Law II - Chapter 35 Forms of Business Organization Name Date Fill in each blank with the exact legal term. 1. A business organization in which the owner has total control and unlimited personal liability is known as a 2. (True False) Opening a sole proprietorship requires many legal formalities. 3. In this type of partnership, the partners divide the profits (usually equally) and the management responsibilities and share unlimited personal liability for debts. 4. A partnership in which...

acct hw QUESTION 1 The partnership form of business organization has tax advantage over sole proprietorship....

acct hw QUESTION 1 The partnership form of business organization has tax advantage over sole proprietorship. combines the records of the business with the personal records of the owner. has tax advantage over corporation. is classified as a separate legal entity. QUESTION 3 Retained earnings is part of stockholders' equity is part of assets is part of liabilities is part of common stock QUESTION 4 A payment of a portion of an accounts payable will increase liabilities decrease stockholders' equity....
4. Forms of business organizations Aa Aa Businesses can be dassified into the following forms: a...

4. Forms of business organizations Aa Aa Businesses can be dassified into the following forms: a sole proprietorship, a partnership, a corporation, a limited liability company (LLC), and a limited liability partnership (LLP). Different forms of businesses have different characteristics. which of the following characteristics would apply to a sole proprietorship? Check all that apply Subject to unlimited liability Can easily raise large amounts of capital Subject to lower income taxes Has unlimited life Less regulated owned by single individual...
4. Forms of business organizations Aa Aa Businesses can be classified into the following forms: sole...

4. Forms of business organizations Aa Aa Businesses can be classified into the following forms: sole proprietorship, partnership, corporation, limited liability company (LLC), and limited liability partnership (LLP) Different forms of businesses have different characteristics. Which of the following characteristics would apply to a limited liability company and a limited liability partnership? Check all that apply. LLPs are not suitable for professional firms such as accounting, law, and architecture Owned by single individual Owners have limited liability and right to...

Different forms of businesses have different characteristics. Which of the following characteristics would apply to a corporation?

4. Forms of business organizations Businesses can be classified into the following forms: sole proprietorship, partnership, corporation, limited liability company (LLC), and limited liability partnership (LLP) Different forms of businesses have different characteristics. Which of the following characteristics would apply to a corporation? Check all that apply. Owned by single individual Owners have limited liability Has unlimited life Chartered by a state and is its own legal entity separate and distinct from its owners and managers Easier to transfer ownership in the form of stock Exempt from double...
Daria sold 25 shares of Schulz Corporation stock she owned to her father on September 2nd...

Daria sold 25 shares of Schulz Corporation stock she owned to her father on September 2nd for $1,700. She purchased the stock in 2015 for $3,200. No stockbroker commissions were paid on either the sale or purchase of the stock. In addition to this sale, she reported a net short-term capital gain of $4,500. She also has a ($5,000) long-term capital loss carryforward available from last year. The amount of income/loss included in her adjusted gross income from these transactions...
QUESTION 1 Manuela has worked as an accountant in her own accounting business, a sole proprietorship,...

QUESTION 1 Manuela has worked as an accountant in her own accounting business, a sole proprietorship, for more than seven years. Among the services she offers is tax return filing and personal investment advising. Which of the following is true of Manuela’s business? A. Manuela has little control over the management and operations of her business. B. Manuela has unlimited liability. C. Outside funding for the business has been easy for Manuela to obtain. D. Manuela had varied and complicated...

write an explanation in Word format for the answer to Example 16 EXAMPLE The Big Picture...

write an explanation in Word format for the answer to Example 16 EXAMPLE The Big Picture Return to the facts of The Ria Picture on p. 4-1. Assume that you learn that David is not inta becoming a stockholder in Transformation, Inc., and that Emily and Ethan will transfer their for 100% of the stock. In addition, you learn that Emily's building is subject to a liability of that Transformation assumes. Consequently, Emily receives her Transformation stock and is of...

Lily wants to build a business. She has very little capital. She does, however, have a...

Homework Answers

Add Answer to:
Lily wants to build a business. She has very little capital. She does, however, have a...

Post as a guest

Earn Coins