sole proprietor and partnership

Question 1

sole proprietor

Answer 1

one person owns or operates business

Question 2

business organization

Answer 2

an establishment formed to carry on commercial enterprise

Question 3

five advantages of sole proprietorships

Answer 3

ease of start up- business license, site permit, name
relatively few regulations-zoning laws
sole receiver of profit
full control
easy to discontinue

Question 4

three disadvantages of sole proprietorships

Answer 4

unlimited personal liability- responsible for everything
limited access to resources, physical or human capital
lack of permanence- fringe benefits

Question 5

fringe benefits

Answer 5

anything other than a cash payment

Question 6

general partnership

Answer 6

share responsibilities equally

Question 7

limited partnership

Answer 7

one partner is the general partner

Question 8

limited liability partnership

Answer 8

all partners are limited

Question 9

five advantages of partnership

Answer 9

ease of start up- article of partnership or uniform partnership act
shared decision making and specialization
larger pool of capital: assets
taxation
partnerships

Question 10

three disadvantages of partnerships

Answer 10

unlimited liability
potential conflict
loss of motivation