In todays economy, almost every business has to decide before operating about what type of business they will have. Should they be a sole proprietorship, partnership, or corporation? Business owners need to consider the ramifications of each type of ownership.

Your friend knows you are studying business law and wants your opinion based on what youve learned. Your friend tells you that they want to start a sports therapy clinic, which they plan to operate as a sole proprietorship. Do you think that is a wise decision? Why or why not? What do you recommend your friend consider before making the decision? What benefits and risks would you advise your friend to be aware of?