What Type of Business Organization is Jake's Painting Service Run As?

Based on the information provided, what type of business organization is Jake's painting service operated as?

A. Sole Proprietorship
B. Partnership
C. Corporation
D. Oligopoly

Final Answer:

Jake's painting service is run as a Sole Proprietorship, where he is the sole owner and has complete control over the business.

Jake's painting service is operated as a Sole Proprietorship. This means that Jake is the sole owner of the business and has full control over its operations. As a sole proprietor, Jake is responsible for all aspects of the business, including purchasing paint, marketing the service, invoicing clients, and handling payments.

In a Sole Proprietorship, there is no legal distinction between the owner and the business entity. Jake personally assumes all legal and financial responsibilities for the painting service. This type of business organization is suitable for small businesses like Jake's painting service, where the owner wants to have direct control over all business decisions.

By operating as a Sole Proprietorship, Jake has the flexibility to make quick decisions, retain all profits generated by the business, and establish a personal connection with his clients. However, he also bears the risk of personal liability for any debts or legal issues that may arise in the course of conducting business.