ch2

Question 1

Definition of A sole proprietorship

Answer 1

is a form of business ownership in which a single individual assumes the risk of operating a business, own sits assets, and controls and uses any profits that are generated. The word sole indicates that the business is started and run by one individual
Sole proprietorshipis also called proprietorship,
individual enterprise, sole trader or individual
proprietorship.
The owner of suchkindof
business is called a proprietor

Question 2

Definition: A partnershipis

Answer 2

an association of two or more persons to carry on asco-owners of a business for profit.
Each of the owners of such form of business is called partners.
Partner’s relationship isbasedon agreement, writtenororal,that is both voluntaryandlegalcalled articleof co-partnership.