Question

Scenario: Annabeth is a mechanical engineer who specializes in making machine parts. She wants to buy a factory and begin making machine parts for solar panels, a growing business sector in her community. Eventually, she plans to export her products to Europe and South America, where solar panel manufacturing has increased in recent years.
What is the best business organization for Annabeth’s new company?
Responses

a sole proprietorship, because the business is small and simple to operate
a sole proprietorship, because the business is small and simple to operate

a cooperative, because local businesses will be her customers
a cooperative, because local businesses will be her customers

a corporation, because she will need financing to get started
a corporation, because she will need financing to get started

a partnership, because she lacks the skills to make machine parts
a partnership, because she lacks the skills to make machine parts
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Assignment


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Answer 1

a corporation, because she will need financing to get started — a corporation provides limited liability, easier access to outside capital/investors, and is better suited to scale and export operations than a sole proprietorship, partnership, or cooperative.