Luna's Dilemma
Luna graduated from college and needed to decide where she wanted to work. She had several options. Her aunt Matilda owned and operated a small business that she started about 20 years ago. Matilda, an individual owner of her business, informed Luna that she could work for her. On one hand, Luna thought it would be a great opportunity to be able to work for her aunt, learn the business, and then run the business when her aunt retires. On the other hand, she also felt that she wanted something a little more challenging a job where she could really use her education.
Another option would be to work for a company that a friend and her husband had started and jointly owned. It was a rapidly growing company with plenty of opportunity for advancement. However, Luna had some reservations about this choice because she was not sure she wanted to work for friends. Her last option was to work for a large retail company, headquartered in Delaware, which had stores across the United States.
After much consideration, Luna decided she didn't want an opportunity and a job because someone knew her. She wanted to prove how motivated and hardworking she was. Once she weighed all the advantages and disadvantages of her different options, she decided to work for the large retail company so that she could gain the most experience for herself
Refer to Luna's Dilemma. What type of company does Luna's friend operate?
a. Incorporation
b. Sole proprietorship
c. Partnership
d. Franchise
e. Corporation
