Scenario:Annabeth is a mechanical engineer who specializes in making machine parts. She wants to buy a factory and begin making machine parts for solar panels, a growing business sector in her community. Eventually, she plans to export her products to Europe and South America, where solar panel manufacturing has increased in recent years.

Question

Scenario:Annabeth is a mechanical engineer who specializes in making machine parts. She wants to buy a factory and begin making machine parts for solar panels, a growing business sector in her community. Eventually, she plans to export her products to Europe and South America, where solar panel manufacturing has increased in recent years.

What is the best business organization for Annabeth’s new company?

a corporation, because she will need financing to get started
a sole proprietorship, because the business is small and simple to operate
a partnership, because she lacks the skills to make machine parts
a cooperative, because local businesses will be her customers

Answer 1

The best business organization for Annabeth's new company would likely be a corporation, because she will need financing to get started and expand her operations. This type of business structure will allow her to raise capital by selling stocks and attract investors to help her achieve her goals of producing machine parts for the solar panel industry and exporting her products internationally. Additionally, a corporation offers limited liability protection for Annabeth, which can help protect her personal assets in case of any business debts or legal issues.