Module 2 Activity 1: What’s Right for You?

A sole proprietorship is the best fit for Nurse Anna, who wants to run a small caregiving agency alone and part-time.

• True
• False

Answer explanation

T – Sole proprietorship is simplest for a one-person business.

A partnership automatically protects the personal assets of the owners from business liabilities.

• True
• False

Answer explanation

F – Partnerships do not provide liability protection.

FutureCare PH, which wants to expand to three cities and attract investors, would benefit most from forming a corporation.

• True
• False

Answer explanation

T – Corporations are ideal for large-scale expansion and investors.

An LLC offers liability protection while being less complex than a corporation, making it a good fit for HealthyHome Services.

• True
• False

Answer explanation

T – LLCs combine protection with simplicity.

Mark and Jen, as co-owners planning to hire staff, are better protected with an LLC than with a simple partnership.

• True
• False

Answer explanation

T – LLC is safer for co-owners planning to grow.