Question

What is the preferred form of ownership for small businesses WITHOUT employees?

Question 7 options:

	Partnership
	Corporation
	S-Corporation
	Sole Proprietor Part of the attraction of owing your own business is that the demands on you are typically less than that of an employee of a firm. Question 8 options: True False Service the SBA provides includes all of the following, EXCEPT: Question 9 options: Guaranteed loans for all who apply SCORE business mentors Provide referrals to other agencies Free advice and training What guidance should you take regarding starting your own business? Question 10 options: Have at least three months experience Get your friends together and take a vote Strike while the "iron is hot"; if you think it's for you, go for it! Do it if "you just can't help yourself"

Answer 1

Q-1: What is the preferred form of ownership for small businesses WITHOUT employees?

A: Sole Proprietor.

Reason: Sole proprietorship is the best/preferred form of ownership for small businesses without employees as they are easy and simple to manage and are self sufficient where the owner is also the manager and the employee. In such sole proprietorships there is no need to register or manage reporting to anyone. Bigger corporations would just push up costs and be unnecessary when there are no employees.

Q-2: Part of the attraction of owing your own business is that the demands on you are typically less than that of an employee of a firm.

A: True.

Reason: Being self employed or owning ones own business means relatively greater freedom and flexibility in managing ones work and time. A healthier work-life balance can be maintained. Even if there are client demands whatever pressure is there is for self growth and self profit instead of working for someone else as an employee so it is justified.

Q-3: Service the SBA provides includes all of the following, EXCEPT:

A: Provide referrals to other agencies.

Reason: The Small Business Administration (SBA) is an U.S. government agency that provides support to entrepreneurs and small businesses including a loan guarantee program, free advice and training, and SCORE business mentors.

Q-4: What guidance should you take regarding starting your own business?

A: Strike while the "iron is hot"; if you think it's for you, go for it!

Reason: This would be the best option since one should seize the opportunity and grab it with open hands. Striking while the iron is hot implies the best situations and conditions have presented themselves to initiate a business opportunity so one should ideally grab it. One doesn't need to have any experience to start their business, one doesn't need to take a vote if they think it is for them they can take advice from a couple of mentors/well wishers and asking too many people always leads to confusing advise as everyone differs in their opinions. One can't do it just like that without a keen passion, interest and calling so, 'doing it if one just can't help themselves' is just not an option and would be detrimental.