A) legally impossible B) politically impossible C) less difficult D) more difficult 3) A sole proprietorship is A) the easiest type of business to set up. B) the most difficult type of business to set up. C) the most expensive type of business to set up. D) the least profitable type of business to set up. 4) Which type of business is the most difficult to set up? A) sole proprietorship B) partnership C) corporation D) There is no difference in the difficulty of establishment.
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Executive Summary The main purpose of this report is to give some advices to Peter who retired as an engineer and never contact with business in the past. Through this report‚ firstly‚ you can see several forms of business organization which are sole proprietorship and partnership. Secondly‚ it will show that some background about Peter and some advices to him. Then‚ it is about introduction of accounting and benefits of an accounting system with a flow chart of a simple accounting system. Finally‚ it
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business organization is defined in the bylaws when the business is formed with the name and contact information of those who own and run the company with their roles defined. The bylaws state the purpose of the organization and what it does. A sole proprietorship does not have bylaws because one person owns and controls the business. Capital Mobilization * The purpose of the firm is to mobilize resources. Put less abstractly‚ it is to amass capital and use it to fill a specific need. A small firm
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whether or not to invest P50‚000 in a business that has pending lawsuits against it. If Pie invests and the business loses the lawsuits‚ the most Joe can lose is __________. a. P50‚000 if Joe is a general partner b. P50‚000 is Joe is a sole proprietor c. P50‚000 if Joe is a limited partner d. P50‚000 plus his share of the lawsuits if Joe is a limited partner 6. All of the following business organizations provide limited liability to their owners except: a.
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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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2-01-06 Part A Sole Proprietorship: A sole proprietorship is owned by only one person. All profits and losses are the responsibility of the owner only. Liability – There is unlimited liability in a sole proprietorship. The owner is solely responsible for any debts that may occur. Income Taxes – The business files taxes as one single unit. Because profits are not shared‚ they are considered personal income to the sole proprietor. Longevity/Continuity – In a sole proprietorship if the owner
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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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| | (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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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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TASK A Sole Proprietorship A sole proprietorship is an unincorporated business owned by one person. It is the simplest and most common type of business. It is attractive to a business owner because it is simple and offers the owner the freedom to make the business decisions and keep all of the profits. That may also serve as a draw back because the owner has to rely on themself for capital‚ knowledge and liability. A sole proprietorship does not need to meet any requirements to start.
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