Multiple Choice

a. I, II, III, and IV

b. II only

c. II and III

d. I, II, and IV

e. None of the choices are correct

Olivia, who has been sewing since a young age, decided that she would like to open a business called Gowns and Smiles, to make and sell prom and other formal dresses. While starting up, she would like to be the only owner of the business. Further, she does not want to go through a rigorous formation process, pay any fees or worry about making annual business filings for Gowns and Smiles. Assume that Olivia opens Gowns and Smiles as a sole proprietorship. The business grows extraordinarily in the first year and she would like to open a storefront. She would also like to add more principals to the business without changing the business structure. Which of the following options are available to Olivia? 1. She can sell equity in Gowns and Smiles. II. She can take on a limited partner. III. She can take on a general partner. IV. She can take on a limited liability partner