Dana Wants to Open Her Own Business After Completing College

Multiple Choice

Dana wants to open her own business after completing college. As a fine arts student, she is planning to provide services as a graphic artist. Although she is nervous about risking her personal assets, she is thinking about forming a proprietorship. Which of the following provides the best advice for Dana?

A) Forming a sole proprietorship can help you protect your personal assets, but it is a poor choice for individuals who want to be their own boss because this form of business is heavily regulated.
B) Forming a sole proprietorship is a great idea. It gives you the ability to be your own boss while also protecting your personal assets from loss.
C) Forming a sole proprietorship is a bad choice. Not only is a sole proprietorship subject to extensive government regulation that will limit your ability to run your business, it also exposes you to unlimited liability.
D) Forming a sole proprietorship will enable you to be your own boss. But if you are really nervous about risking your personal assets, you might want to consider some other form of ownership because it will also expose you to unlimited liability.