Sole Proprietorship (advantages vs. disadvantages) Flashcards
advantages of sole proprietorships (1/6)
ease of starting and ending
advantages of sole proprietorships (2/6)
be your own boss
advantages of sole proprietorship (3/6)
pride of ownership
advantages of sole proprietorship (4/6)
reatian a profit
advantages of sole proprietorship (5/6)
no special taxes
advantages of sole proprietorship (6/6)
less regulation
disadvantages of sole proprietorship (1/8)
unlimited liability
disadvantages of sole proprietorship (2/8)
limited financial resources
disadvantages of sole proprietorship (3/8)
management difficulties
disadvantages of sole proprietorship (4/8)
overwhelming time commitment
disadvantages of sole proprietorship (5/8)
few fringe benefits
disadvantages of sole proprietorship (6/8)
limited growth
disadvantages of sole proprietorship (7/8)
limited lifespan
disadvantages of sole proprietorship (8/8)
possibly pay higher taxes
liability for a business includes …
the responsibility to pay all normal debts
describe unlimited liability
any debts or damages incurred by the business are your debts and you must pay them as you and your business are considered one
list the four main types of partnerships
general partnership, limited partnership, general partner and limited partner
define “general partnership”
a partnership in which all owners share in operating the business and in assuming liability for the business’s debt
define “limited partnership”
a partnership with one or more general partners and one or more limited partners
define “general partner”
an owner (partner) who has unlimited liability and is active in managing the firm
define “limited partner”
an owner who invests money in the business but does not have management responsibility or liability for losses beyond the investment
