1

When Wedad Mizal began Avatar, a New York-based content-marketing company, she ran it as a sole proprietorship. As a sole proprietor, Mizal:

found it easy to raise capital

had no trouble finding qualified employees

found the business to be easy and inexpensive to form

had limited liability

was able to take advantage of various tax deductions

2

Gabriel Borja owns and operates DeepClean, a Florida-based company that cleans up mold and mildew in homes and businesses. As the sole proprietor of the business, he has unlimited liability, which means:

he has unlimited access to funds

he is fully liable for all business debts

he usually has to put in an unlimited number of hours

he must have liability insurance

he is free from government regulation

3

Michael Gorgas and Walid Jassim consider themselves to be experts on hunting in the mountains in North Carolina. As a result, the two men established a company that markets hunting expeditions. Gorgas and Jassim share responsibilities for booking the trips, gathering supplies, and guiding groups of five to seven hunters into locations where they can hunt for deer and bear. Since the two will share any profit equally, this would be an example of a(n)

S corporation

cooperative

sole proprietorship

partnership

double proprietorship

4

Simply Shitake seemed like a great idea. Chef Leo Nyami and Ayana Rice decided to take advantage of the popularity of shitake mushrooms and create some shitake mushrooms products that could be sold to restaurant patrons and other gourmets through their new company. Nyami and Rice have recently abandoned their business because they could not pay its outstanding business debts. Since Nyami and Rice are both liable for the debts, their business was a(n):

general partnership

private corporation

limited partnership

open corporation

quasi corporation