Rocky Rhodes is convinced that he has a great idea for a new business. Unfortunately, the type of business he wants to start would require a fairly high initial investment and Rocky has a poor credit rating and very little personal wealth. Rocky would be unlikely to find success if he organized his business as a sole proprietorship. Select one: 1. True 2. False

Question

Business

Lukas Lee

26 October, 23:45

Rocky Rhodes is convinced that he has a great idea for a new business. Unfortunately, the type of business he wants to start would require a fairly high initial investment and Rocky has a poor credit rating and very little personal wealth. Rocky would be unlikely to find success if he organized his business as a sole proprietorship. Select one: 1. True 2. False

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Answers (1)

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Winston Kennedy · Answer 1

True.

Explanation:

The given statement asserts a true claim that Rocky Rhodes has lesser chances of succeeding if he goes for a sole proprietorship as he neither possesses a great personal wealth nor he has a good credit score to take a loan for his business investment. He has a below-par credit rating and banks would not lend him the amount that he requires for investing in his business. Therefore, he would require one or more partners either with good personal wealth or with a good credit rating on which the banks would lend him loans for the business. Then, only Rock has chances of succeeding in his business.