Problem
Assess Limitations of Sole Proprietorships Paul opened a florist business that marketed tropical flowers as a sole proprietorship. His idea was that by offering flowers that no other local store sold, he could charge high prices and earn a good profit. This may have been a good idea, but his business failed. First, he had only $30,000 to get started, so he was never able to keep many flowers in stock. Although he knew flowers, he didn't know much about advertising, accounting, or how to direct employees. Even when he put in 80-hour weeks, things didn't get done on time. When the business failed, he owed $40,000. The bankruptcy court took his house and car to pay his debts. Explain why Paul's business might have been more successful if it had been organized as a corporation or even a partnership.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.