because making the choice is merely a technicality‚ which has little impact on the business and its owner(s). 13. The sole proprietorship is the best form of ownership for entrepreneurs launching their first businesses. 14. The sole proprietorship is the easiest form of ownership to create‚ but once formed‚ it is subject to the greatest number of regulations. 15. If a sole proprietorship fails‚ the owner is not liable for its debts since the business is a separate legal entity. 16. Although not required
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1. Sole Proprietorship Single proprietorship is the simplest form of organization in most of the countries in the world. Unlike other forms of entity‚ it is usually not governed by special laws. A proprietorship is a type of business entity which legally has no separate existence from its owner. Hence‚ the limitations of liability enjoyed by a corporation and limited liability partnerships do not apply to sole proprietors. All debts of the business are debts of the owner. The single proprietor has
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Answer: c Diff: E [i]. Which of the following statements is true? a. One of the benefits of incorporating your business is that you become entitled to receive unlimited liability. b. Sole proprietorships are subject to more regulations than corporations. c. Sole proprietorships do not have to pay corporate tax. d. All of the statements above are correct. e. None of the statements above is correct. Firm organization Answer: c Diff: E [ii]. Which of the following
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Petris University of Phoenix Accounting ACC/561 November 11‚ 2011 Small-Business Idea Paper There are five different forms of business organizations that I can consider when planning to start a business. They are 1. Sole proprietorship 2. Partnership 3. C corporation 4. S corporation 5. LLC – Limited Liability Company It is important to understand each organization’s structural make up‚ to make an informed decision about which form
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| | (1.2) Firm organization F M | Answer: b | EASY | . | The major advantage of a regular partnership or a corporation as a form of business organization is the fact that both offer their owners limited liability‚ whereas proprietorships do not. | | | | | | | | | | | | a. | True | | | | | | | | | b. | False | | | | | | | | | | | | | | | | | | | (1.2) Partnership F M | Answer: a | EASY | . | There are three primary
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Nature of Partnerships Nature of Partnerships When starting a business‚ it can be with a sole proprietorship‚ a partnership‚ or as a company. A partnership is the most popular and the easiest to form. Partnerships combine individual talents and skills together for a hopefully successful business enterprise venture. Man has realized that it is easier to do something with the help of others than singly. Partners‚ also‚ provide a greater chance of obtaining equity capital for their business venture
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execute this idea: a sole proprietorship‚ a partnership‚ or a corporation. The sole proprietorship is the simplest of these ideas. In this idea‚ we would retain completely decision-making power over the entire business (Pecher‚ Steiber‚
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CHAPTER 1 AN OVERVIEW OF FINANCIAL MANAGEMENT Forms of business organization Answer: c [i]. Which of the following could explain why a business might choose to organize as a corporation rather than as a sole proprietorship or a partnership? a. Corporations generally face fewer regulations. b. Corporations generally face lower taxes. c. Corporations generally find it easier to raise capital. d. Corporations enjoy unlimited liability. e. Statements
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Running Head: Case Study #4 Case Study #4 Initial Thread Jean S. Hamby BUSI 561 Liberty University Introduction Betty Wilson has decided to open a coffee shop and is considering various options including franchising‚ sole proprietorship‚ joint venture‚ corporation and partnership. In addition to determining the best legal entity to form‚ Betty has to decide if she will employ or partner with various friends and family members. Finally‚ she plans to name the coffee shop The Gathering
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out the advantages and disadvantages of Sole Proprietorship’s‚ Partnerships‚ Corporations‚ and cooperative Business organizations. The information provided will also give you an insight on exactly what each Business Organization does and how it works and fits in Business structure. A lot of businesses start as sole proprietorships. There is typically one person who usually has day-to-day responsibility for running the business and that owns the firms. The Sole proprietors typically own all of the
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