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

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.

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.

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

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.
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Answer 1

The most likely hurdle the recent high school graduate will face is:

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

As a new graduate with no previous work experience or current income, obtaining a bank loan might be challenging, as lenders typically look for a reliable income source and credit history when considering loan applications. The other options discussed may not be as significant of a hurdle for her situation, especially since establishing a sole proprietorship is generally straightforward and doesn't require approval from investors. Additionally, while understanding taxes is important, it is not typically considered a significant barrier to starting a sole proprietorship.