Understanding Business Structures with Qian

Qian, a dog lover, starts a dog walking service as a sole proprietorship, enjoying flexibility but facing unlimited liability. As her business grows, she forms a general partnership with Sean, doubling their capacity but sharing profits and liabilities. To further expand and protect personal assets, they establish a corporation, offering limited liability and enabling nationwide growth plans.

What is one advantage of Qian's sole proprietorship?

• She can make her own hours.

• She has limited liability.

• She has a team to help with work.

• She shares decision-making duties.

What is a major risk associated with Qian's sole proprietorship?

• Shared profits

• Limited customer base

• Limited liability

• Unlimited liability

How does forming a general partnership benefit Qian's business?

• It allows her to work alone.

• It increases her personal assets.

• It limits her liability.

• It reduces her workload.

What is a downside of Qian's general partnership with Sean?

• They have limited liability.

• They have no legal responsibilities.

• They must share profits.

• They cannot expand the business.

What new business structure do Qian and Sean adopt to protect their personal assets?

• Sole proprietorship

• Limited partnership

• General partnership

• Corporation

What additional services do Qian and Sean offer after opening a retail store?

• Veterinary services

• Grooming and boarding

• Pet adoption

• Dog training

What is the long-term goal for Qian and Sean's business?

• To remain a small local business

• To expand internationally

• To focus solely on dog walking

• To expand nationwide