COMMERCE 1E03 Chapter Notes - Chapter 6: Sole Proprietorship, Privately Held Company, General Partnership
23 Sep 2017
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Document Summary
Sole-proprietorship - a business that is owned, and usually managed, by one (1) person. Partnership - a legal form of business with two or more parties. Corporation - a legal entity with authority to act and have liability separate from its owners. Sole-proprietorship - one owner, oldest form of business. Advantages: ease of starting and ending, be your own boss, pride of ownership, retain profits, you keep all profit after costs, no special taxes, less regulation. Disadvantages: unlimited liability, limited financial resources, loan are harder, they look at your level of income, past, credit history etc, management difficulties, overwhelming time commitment, few fringe benefits. Fringe benefits are like medical plans, optical plan, medical plan i. more expensive as sole proprietor: limited growth, limited lifespan, possibly pay higher taxes. are you better off registering business as sole proprietor or private corporation. Unlimited liability - the responsibility of business owners for all of the debts of the business.
