MGMT 100 Study Guide - Final Guide: E-Commerce, Franchise Agreement, Franchising
Document Summary
Lo1 list the advantages and disadvantages of sole proprietorships. Advantages: ease of starting and ending the business. All you have to do to start a business is buy the minimum required equipment and advertisement. To stop a business, you simply stop without the consultation. However, you may require a license: being your own boss. You can start things quickly, and have responsibility for your vision. When mistakes are made, they"re your mistakes: pride of ownership. Deserving of credit for taking risks, and providing needed products: retention of company profit. The pleasure of knowing you can earn as much as possible, and not have to share: no social taxes. Taxed as the personal income of the owner, and the owner pays the normal income tax rate on that money. Can claim any business losses against other earned income: less regulations. Less regulated than corporations, which proves to be less costly. Disadvantages: unlimited liability the risk of personal losses.
