Four friends would like to sell their hand-crafted goods in an online store. After pooling their resources, they discover that they have more than enough in savings to cover the costs of starting and operating the business. All four friends will contribute to the daily operation of the business, and each would like the ability to make business decisions of their own. Which of the following business structures would be preferable?(1 point)

Question

Four friends would like to sell their hand-crafted goods in an online store. After pooling their resources, they discover that they have more than enough in savings to cover the costs of starting and operating the business. All four friends will contribute to the daily operation of the business, and each would like the ability to make business decisions of their own. Which of the following business structures would be preferable?(1 point)
Responses

a sole proprietorship
a sole proprietorship

a general partnership
a general partnership

a corporation
a corporation

a limited partnership

GPT-4o mini · Answer

Given that all four friends want to contribute to the daily operation of the business and want the ability to make business decisions, the most appropriate business structure would be:

a general partnership

In a general partnership, all partners can actively participate in managing the business and share in the profits and losses. This structure also allows for flexibility in decision-making among the partners. A sole proprietorship would not be suitable as it is run by a single individual, and a corporation would involve more formalities and a different management structure. A limited partnership would restrict some partners from participating in the business operations. Therefore, a general partnership best fits their needs.