Question

Juanita wants to grow her business. Which options does she have? Select all that apply.

Juanita could incorporate and try to find investors to help her grow her business.
Juanita could remain a sole proprietor and begin a web-based magazine.
Juanita could take on a partner, become a partnership, and begin hiring other staff members to take on more translating work.
Juanita could buy an existing franchise and change its product to fit her translation skills.
Juanita could remain a sole proprietor and incorporate her company.

Answer 1

Selected: 1, 2, 3.

- 1 (incorporate and seek investors): Valid — incorporating (forming a corporation or LLC) can make it easier to bring in outside investors and raise capital for growth.
- 2 (remain a sole proprietor and start a web-based magazine): Valid — as a sole proprietor she can expand into new offerings (like a web magazine) to grow revenue.
- 3 (take on a partner, form a partnership, hire staff): Valid — bringing in a partner and hiring employees is a common way to scale capacity and grow the business.

Not selected:
- 4 (buy a franchise and change its product): Generally not realistic — franchise agreements require you to operate the franchised business as specified; you typically cannot change the product/service to suit your own specialty.
- 5 (remain a sole proprietor and incorporate): Contradictory — incorporating changes the business form; you cannot simultaneously remain a sole proprietor and be incorporated.