Wedding Planning Certification Practice Test

What can a sole proprietorship allow you to do as a wedding planner?

1. Share profits with partners

2. Limit personal liability

3. Retain complete control over the business

4. Expand easily into multiple locations

The correct answer is: Retain complete control over the business

A sole proprietorship is a business structure where one individual owns and operates the business independently. This arrangement allows the wedding planner to retain complete control over all aspects of the business, including decision-making, financial management, and the overall direction of the company. Since there are no partners or shareholders involved in a sole proprietorship, the planner can implement their vision without needing consensus or approval from others. Having this level of control enables the planner to make swift decisions, adapt to client needs effectively, and maintain a clear brand identity that reflects their personal style. This autonomy can lead to more innovative and customized services tailored to the individual preferences of clients. While some of the other answer choices may describe features of different business structures, they do not apply to a sole proprietorship. For example, sharing profits with partners is not relevant in a sole proprietorship because there are no partners involved. Similarly, the limitation of personal liability is a characteristic more associated with structures like LLCs or corporations, and expanding easily into multiple locations typically requires additional resources and a different business approach that may be easier in other business forms.