Answer to Question #48665 in Economics of Enterprise for kalvin

Question

Webster is a talented baker and has a degree in business management. He wants to own his own chain of incorporated bakeries one day. What obstacle does he face to starting a corporation right away?
High up-front costs
Lack of expertise
Risk to personal assets
Sole liability

Answer 1

If Webster is a talented baker, has a degree in business management and wants to own his own chain of incorporated bakeries one day, he will face high up-front costs to starting a corporation right away, because to create a corporation, it isn't enough to have good skills and you need a huge starting capital to do it at once.