Log in
HomeTextbook Notes300,000CA170,000

Business Administration 1220E Chapter Notes -Sole Proprietorship

62 views1 pages
24 Apr 2012
School
Western University
Department
Business Administration
Course
Business Administration 1220E
Professor
Poulopoulos

For unlimited access to Textbook Notes, a Class+ subscription is required.

hwpark22 and 40161 others unlocked
Business Administration 1220E Full Course Notes
40
Business Administration 1220E Full Course Notes
Verified Note
40 documents

Document Summary

A business owned and usually operated by a single individual. The proprietor takes ownership of the company"s profitability and assets but also assumes fill responsibility for the company"s losses and debts. There are minimal legal requirements and often minimal capital requirements. It can terminate should the owner become disabled, die, or file for bankruptcy. Offers the owner freedom and flexibility in making decisions easily and quickly. Since there are no others to consult, the owner has absolute control over the use of the company"s resources. They might experience difficulties obtaining capital because lenders might not trust such a small business. Might be difficult to attract employees because there are few opportunities for advancement, minimal fringe benefits, and little employee security. Unincorporated enterprise owned by two or more individuals. A partnership agreement expresses the right and obligations of each partner.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents

Business Administration 1220E
Final Exam
Study Guide
Business Administration 1220E Study Guide - Sensitivity Analysis, Floating Charge, Making Money
greenserval417
COMM-1007EL Chapter Notes - Chapter 2: Asset, Accounts Payable, Cash Flow
plumbee368
BUS-1201 Lecture Notes - Lecture 4: Sole Proprietorship, Professional Liability Insurance, Decision-Making
oliveshark565

Related Questions

In a sole proprietorship, the profits earned by the business are:
 
A. taxed as income for the business, but exempt from the personal income tax paid by the owner.
 
B. taxed at the lowest corporate rate.
 
C. the property of the owner, except for taxes owed to the government.
 
D. tax-free if the appropriate exemption is filed with the local government.

Partnerships refer to more than one owner. A limited partnership ______________.
a) consists of general partners and limited partners, at least one of each
b) is a shadow firm for a much larger corporation. It is like a shell company to dispose of risky assets
c) is taxed similar to a corporation, whereas a general partnership is taxed like a sole proprietorship
d) is limited by the number of partners allowed. There can only be a total of 10 partners actively involved in the business

Which of the following statements is true of business ethics?
a. Ethical behavior can not only enhance a company's reputation but can also drive profits.
b. Conducting business in an ethical manner does not influence the financial performance of a company.
c. Social responsibility is directed only toward a company's customers and not its employees.
d. Social responsibility in business is less important than satisfying shareholders.
e. Business ethics is not relevant to nonprofit organizations.