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) Proprietorship

Question

Quizplus · Accepted Answer

By choosing to do all the work himself and not taking any legal steps to form a special organization, David has essentially chosen to operate as a sole proprietorship. This is the simplest and most common form of business organization where an individual owner is responsible for all aspects of the business, including any legal or financial liabilities.

David Has Decided to Open an Auto-Detailing Business