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Answer on Economics of Enterprise Question for litekiah green

Question #41685
Paul and his friend Tori make decorative art out of silver spoons. They want to start a business that they can easily dissolve when they move on to their next project. Which of these will suit their needs best?


Limited liability corporation


Sole proprietorship
Expert's answer
The best form is partnership. It gives the highest level of freedom to Paul and his friend. They can easily dissolve the business when they move on to their next project if it is organized in partnership form. Corporation is too difficult scheme for such small business and the same as limited liability corporation has some restrictions and rules as for the amount of initial investment capital.

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