Portia owns and manages a sporting apparel company by herself. Which type of business organization does this most likely represent?

• A. Sole proprietorship
• B. Corporation
• C. Partnership
• D. Limited liability company (LLC)

Answer: (A)

Verified step by step guidance

1. Understand the concept of business organizations: A business organization refers to the legal structure under which a business operates. Common types include sole proprietorship, corporation, partnership, and limited liability company (LLC). Each has distinct characteristics.
2. Analyze the scenario: Portia owns and manages the company by herself. This indicates that she is the sole owner and decision-maker, which is a key characteristic of a sole proprietorship.
3. Compare the options: Sole proprietorship involves a single owner who manages the business. A corporation is a separate legal entity owned by shareholders. A partnership involves two or more individuals sharing ownership. An LLC combines elements of partnerships and corporations, offering limited liability protection.
4. Match the characteristics: Since Portia is the sole owner and manager, the business most closely aligns with the definition of a sole proprietorship, where the owner has full control and responsibility for the business.
5. Conclude the reasoning: Based on the information provided and the characteristics of the business types, the most likely answer is 'Sole proprietorship.'