Dana Wants to Open Her Own Business After Completing College

question 68

Multiple Choice

Dana wants to open her own business after completing college.As a fine arts student,she is planning to provide services as a graphic artist.She wants the freedom to be her own boss and doesn't want to deal with a lot of rules and regulations.But she is nervous about risking her personal wealth.She is thinking about forming a sole proprietorship and asks you for your opinion about this form of business.Which of the following statements is most accurate?

• A)Forming a sole proprietorship can help you protect your personal assets, but it is a poor choice for individuals who want to be their own boss because this form of business is heavily regulated.
• B)Forming a sole proprietorship is a great idea. It gives you the ability to be your own boss while also protecting your personal assets from loss.
• C)Forming a sole proprietorship is a bad choice. Not only is a sole proprietorship subject to extensive government regulation that will limit your ability to run your business, it also exposes you to unlimited liability.
• D)Forming a sole proprietorship will enable you to be your own boss. But if you are really nervous about risking your personal assets, you might want to consider some other form of ownership because it will also expose you to unlimited liability.

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Definitions:

Selection Biases

The distortion of statistical analysis resulting from the method of collecting samples, leading to non-representative samples that do not reflect the true population.

Favorable

Expressing approval or support; advantageous or beneficial in nature.

Dramatic

Pertaining to drama; characterized by aspects of drama or theatrical performance, often implying an emotional or unexpected event.

Filter Bubbles

A situation where an individual's online experience is personalized by algorithms, leading to the exposure of only information and viewpoints similar to their own.