A recent high school graduate would like to establish an online tutoring service as a sole proprietorship operating under her own name. Having never worked before and having no current income, which of the following hurdles is she likely to face?(1 point)

Question

Responses

She will have to seek approval from investors before making business decisions.
She will have to seek approval from investors before making business decisions.

It will be difficult to cover start-up costs since banks will be unlikely to loan her money.
It will be difficult to cover start-up costs since banks will be unlikely to loan her money.

It will be costly and time consuming to file the paperwork associated with establishing a sole proprietorship.
It will be costly and time consuming to file the paperwork associated with establishing a sole proprietorship.

She will have to learn to navigate the complex taxes associated with a sole proprietorship.
She will have to learn to navigate the complex taxes associated with a sole proprietorship.

Answer 1

The most relevant hurdle she is likely to face is:

It will be difficult to cover start-up costs since banks will be unlikely to loan her money.

As a recent high school graduate with no income and no prior work experience, securing funding from traditional lenders such as banks can be challenging, as they typically assess credit history and income stability when considering loan applications.