Ch 26

Question 1

one who initiates and assumes the financial risk of a new business enterprise and undertakes to provide or control its management

Answer 1

entrepreneur

Question 2

the simplest form of business organization, in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business

Answer 2

sole proprietorship

Question 3

-proprietor alone bears the burden of any losses or liabilities incurred by the business enterprise. sole proprietor has unlimited liability (personal liability)

Answer 3

disadvantages of sole proprietorship