Sole Proprietorships
What is Sole Proprietorships?
A business owned and managed by a single individual.
What is the most common type of partnership?
General partnership
What is a corporation?
A legal entity owned by individual stockholders.
Are conglomerates allowed by the company?
Usually allowed
What resources do you need to start and operate a business?
Money, equipment, experience, etc.
Partnership with no general partner
Limited liability partnership
What are the types of corporations?
Closely held corporations and publicly held corporation.
What is a conglomerate?
A merger of 3 or more companies that produced unrelated products.
What are the characteristics of sole proprietorships?
Ownership, liability, tax liability, risk, and considerations.
Write 3 advantages of partnership
Share decision making
Easy to start up
Inexpensive
Define a closely held coporation.
It’s a privately held corporation(s) which only issue stock row few people usually family membets.
What are the advantages of Multinationals Corporations?
Provide jobs around the world
Spread new tech
Help improve living standards
What are the advantages and disadvantages of a sole proprietorship?
Advantages: Easy start-up, relatively few regulation, and get all profits.
Disadvantages: Unlimited personal liability, limited access to resources, and lack of performance.
You fall in the Uniform Partnership Act if
partners don’t establish agreements
What are the advantages of incorporation?
Limited liability for owners, transferable ownership, ability to attract capital and long life.
What can corporate mergers led to?
It can led to larger companies and more profitable companies