Answer :
Final answer:
Ed Smith can legally conduct business as 'Ed Smith, DBA 'Ed Knows Real Estate''. DBAs allow individuals or companies to conduct business under a different name from their legal name, which must be registered according to local laws.
So the correct option is (3) Encourage disciplined communication.
Explanation:
Ed Smith, a sole proprietor using the trade name 'Ed Knows Real Estate', may legally conduct business under the name Ed Smith, DBA 'Ed Knows Real Estate'. DBA stands for 'Doing Business As' and is a declaration that an individual, sole proprietor or company is conducting business under a name different from their legal, registered name. In Ed's case, his legal name is Ed Smith, but he chooses to do business under the trade name 'Ed Knows Real Estate'.
This allows him to use the trade name for marketing and operational purposes while maintaining his legal identity as Ed Smith for official documentation and contracts.
Sole proprietors like Ed need to register their DBA if they wish to conduct business under a name different from their own. This registration typically happens at the county level or with state authorities, depending on local laws. By registering a DBA, Ed legally links the trade name 'Ed Knows Real Estate' with his legal name, thereby facilitating banking, legal, and marketing activities under the trade name.
