Jessica Hatcher has a small business as a children\'s swimwear distributor calle
ID: 2408479 • Letter: J
Question
Jessica Hatcher has a small business as a children's swimwear distributor called "Kiddie Kovers." While Jessica considered starting her business with her sister, Julie, Julie didn't possess the commitment to run a business and therefore Jessica has left her behind.
Jessica has done well on her own but was concerned six months ago about losing her personal assets due to a lawsuit against "Kiddie Kovers" from a client. The lawsuit was due to an incorrect shipment that could not be replaced due to bankruptcy of the original manufacturer.
What form of business does Jessica operate?
Sole proprietorship
General Partnership
Corporation
None of the other answers
A.Sole proprietorship
B.General Partnership
C.Corporation
D.None of the other answers
Explanation / Answer
Jessica is operating the business alone and there is no limited liability for her she was going to lose her personal assets for the business transaction.
Thus there is only one person operating the business with unlimited liability. Hence the business is running as a sole proprietorship.
Therefore option (A) is correct.
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