David has decided to open an auto-detailing business. He will pick up an automobile from the client, take it to his parents' garage, detail it, and return it to the client. If he does all of the work himself and takes no legal steps to form a special organization, which type of business organization, in effect, has he chosen?
A)Limited-liability company
B)Partnership
C)Corporation
D)Sole proprietorship

Question

Quizplus · Accepted Answer

David has chosen a sole proprietorship, which is the simplest and most common form of business organization. As a sole proprietor, he is the only owner of the business and has complete control over its operations. However, he is also personally responsible for any debts or legal issues that arise from the business.

David Has Decided to Open an Auto-Detailing Business