Question

Ronald is the sole owner of a fast food store. Over the past six months, his sales have fallen and the store has been running at a loss as a result of a popular fast food chain outlet opening in the area. Friends and relatives who lent Ronald money to open the store want him to sell his personal property in order to repay those loans. What ownership category of business is Ronald in?
A.
limited partnership
B.
corporation
C.
proprietorship
D.
cooperative organization

Answer 1

the answer I limited partnership

Answer 2

The correct answer to the question is proprietorship. Hence the option to the question is Option C.

The reason for the answer is that since Ronaldo is running in an extremely low business profile since the last few time when there has been a popular shop which has been opened in there, so he needs money to remodel the shop so that people can be attracted to the shop of the Ronaldo.

So he needs money which is done by leasing and mortgaging the property of Ronaldo and this phenomenon is known as the proprietorship by other people.