advantages of sole proprietorship
when your business makes a profit and you get to keep all of it
what is profits to owner
when you have a sole proprietorship, the only capitol you get is money you provide this is called-
limited capital
what is a business that is owned by 2 or more persons who operate the business for profit?
a partnership
what is a general contractor?
own contracting firms in charge of construction; salaried employees of property owners and developers
a situation in which the owner of the business is responsible to pay the business debts out of personal assets.
what is unlimited liability?
when are your profits considered as taxable income?
If you operate your business full time
what is essential to a business?
adequate funding and positive cash flow
what is a partnership agreement
a written document that states how the partnership should be organized
what must contractors do to begin a project?
submit a bid or price quote
a business owned by two or more persons
what is a partnership?
if your business operates part time and you have another full time job, what will your taxable income include?
income from your job as well as the net income of the business
what is the definition of unlimited liability?
if your business is not successful, you are responsible for all losses.
what is the difference between a general partners and limited partners
general partners are business partners who have the decision making authority and limited partners are partners who don't take an active role in making or running the businesses.
what does Chris Jackson do as a general contractor?
helps homeowners, landlords, and business construct
a written document that states how the partnership will be organized
what is a partnership agreement?
do sole proprietorships have high or low government regulations
low
sometimes if you are strong in one area and weak in another, it can be a disadvantage not to have a partner to help with ideas and decisions, what is this called?
limited human resources
what are the five advantages of partnership?
easy set up, more skills and knowledge, available capital, total control by partners, profits taxed once
residential contractors rarely take on large scale projects for example-
bridges, sewage systems, and industrial sites
business partner that does not take an active roles in decision making
limited partner