Question

business law 1a / unit 3: getting a new business started

1. joaquin has decided to start a business that is owned by him and no one else. what type of business is joaquin planning to open?

○ sole proprietorship
○ limited liability
○ a corporation
○ a partnership

Explanation:

To determine the business type, we analyze each option:

• sole proprietorship: A business owned and run by one individual. This matches Joaquin's situation (owned by him and no one else).
• limited liability: Refers to a legal structure (like an LLC) but doesn't specify ownership count; usually involves more than one owner or formal structure, not just one person.
• a corporation: Owned by shareholders (multiple owners typically) and has a formal legal structure, not a single - owner setup.
• a partnership: Requires two or more owners (partners), so it can't be a partnership as Joaquin is the only owner.

Answer:

A. sole proprietorship