Question
Jen is a 4th year student who has been a varsity soccer player throughout her time at Queen's. Truth be told, she loves soccer far
Jen is a 4th year student who has been a varsity soccer player throughout her time at Queen's. Truth be told, she loves soccer far more than her studies in Biology, and she would very much like to fashion a career out of the sport. While at Queen's, Jen has volunteered with a local soccer club and has run training sessions for young players three nights a week. Armed with knowledge of sport science, as well as innate soccer skill and an excellent rapport with kids, Jen would like to open a "soccer academy" for soccer-playing kids of all ages. She believes Kingston to be too small to support such a business and has decided to open her academy business in her native Ottawa. While she doesn't see this as a capital intensive business, she will need some money for equipment and, at least initially until revenue comes in, money to rent out gyms and indoor/outdoor soccer fields. Brent, the father of one Kingston's most promising young soccer stars - and a girl Jen has trained - has offered to provide some financial help to Jen: as he puts it, "I'd like to partner with you on this venture, since I know I'll need to bring my daughter to Ottawa for further training."
Assuming Jen accepts Brent's investment, and decides NOT to incorporate the soccer academy, what business structure(s) is(are) possible for her to use for her business?
a) A partnership if Brent's money is used to acquire business assets and if Brent is to be involved in running the academy.
b) A sole proprietorship if she wants full control of the business - she can accept Brent's money as a loan.
c) Either (a) or (b)
d) Neither (a) or (b) - this is actually an example of a joint venture where Brent provides the money and Jen runs the business.
I know that A is correct but is B correct too?
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