Question

ronald is the sole owner of a fast food store. over the past six months, his sales have fallen and the store has been running at a loss as a result of a popular fast food chain outlet opening in the area. friends and relatives who lent ronald money to open the store want him to sell his personal property in order to repay those loans. what ownership category of business is ronald in?
a. limited partnership
b. corporation
c. proprietorship
d. cooperative organization

Explanation:

In a proprietorship (sole - proprietorship), the owner has unlimited liability. This means that if the business fails, the owner's personal property can be used to repay business debts. Ronald is the sole owner, and his friends and relatives want him to sell his personal property to repay loans, which is characteristic of a proprietorship.
A limited partnership has at least one general partner and limited partners. Limited partners have limited liability, but the general partner has unlimited liability. However, the key here is that Ronald is the sole owner, so it's not a limited partnership.
In a corporation, shareholders have limited liability. The business is a separate legal entity, and shareholders' personal property is generally not at risk for business debts.
A cooperative organization is owned by its members (customers, workers, etc.) who share in the benefits. It does not match Ronald's situation as a sole owner with personal property at risk.

Answer:

C. proprietorship