Step 1: Identify the longest carbon chain in the compound. The longest chain here has 4 carbon atoms, which is called butane.
Step 2: Identify the functional groups present in the compound. There is a hydroxyl group (-OH) and a carboxylic acid group (-COOH).
Step 3: Determine the position of the hydroxyl group. It is on the second carbon of the chain.
Step 4: Since there is a carboxylic acid group, we name the compound as a carboxylic acid. The base name is butanoic acid.
Step 5: Combine the information from steps 2, 3, and 4. The compound is named 2-hydroxybutanoic acid, indicating the presence of the hydroxyl group on the second carbon.