BFIN 300 Quiz 1 With Solutions
Advantages of Sole Proprietorship -Easiest to start
-Least Regulated
-Single Owner Keeps all profits
-taxed once as personal income
Disadvantages of Sole ProprietorShip -Limited life of owner
-Equity capital limited to owners personal wealth (limited opportuniti...
Advantages of Sole Proprietorship -Easiest to start
-Least Regulated
-Single Owner Keeps all profits
-taxed once as personal income
Disadvantages of Sole ProprietorShip -Limited life of owner
-Equity capital limited to owners personal wealth (limited opportunities)
-unlimited liabilities
-difficult to sell ownership interest (requires sale of the entire business)
Sole Proprietorship a business owned by one perso
Partnership similar to proprietorship except two or more owners
Advantages of partnership -two or more owners
-more capital
-relatively easy to start
, BFIN 300 Quiz 1 With Solutions
-income taxed once as personal income
Disadvantages of partnership -unlimited liability
-limited life of business (dies when one partner wants to sell or dies)
-difficult to transfer ownership
General Partnership all partners share in gains and losses
Limited Partnership not actively participating in the business; liability for debts limited to
what they contribute
Corporation a legal "person" separate and distinct from its owners, and it has many rights,
duties and privileges of an actual person
Advantages of a corporation -limited liability
-unlimites life
-separation of ownership and management
-transfer of ownership is easy
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