1. Which of the following best describes limited liability as it relates to a business? A. The stockholder’s financial liability is limited to a fixed investment amount. B. Limited liability discourages entrepreneurs to start new businesses. C. If the business fails, personal assets of the owner(s) are at risk. D. Creditors are entitled to recover outstanding debt beyond the financial assets of the business. Incorrect : While the unlimited liability corporations lessened corruption
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startup company The Legal & Ethical Environment of Business BUS 252-003 Winston Spencer Waters Submitted 11/21/2013 By Maria Andersen The intention with this paper is to examine and explore the three main types of business structures; sole proprietor, corporation, and partnership. During this paper, we will take a deeper look into each of these structures, discuss the advantages and disadvantages, and finally determine which is more beneficial to use for a startup company. The process
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interest in. Will his business be a sole proprietorship, a partnership, corporation, or limited liability company. Each of the four business types has many advantages and disadvantages regarding taxes and liability. The individual who wants to start-up the business should take into consideration many factors concerning cost, control, and the amount of risk he is willing to assume. Sole Proprietorship is the most common type of business. Sole proprietorship is the easiest type of ownership
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Legal Issues for Business Organizations Sole Proprietorship The sole proprietorship is the most common form of business and has been around for many years. It is the simplest form of business because it is owned and operated by an individual. Some advantages to choosing a sole proprietorship would be minimal state and federal regulations, which make it easy to control and manage. Another is the cost to start a Sole Proprietorship is minimal. It is a good form of business for someone who is starting
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business organizations are, sole proprietorship, partnership, and corporation. In this paper, I will discuss the three forms of business organizations, how much control its owners have, advantages as well as disadvantages and legal liability. The most common type of business operating in the United States today is sole proprietorship. It also is the easiest form. Sole proprietorship has only one owner, and he or she has total control. An example of a sole proprietorship is a beauty salon. The
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decision making process. Sole proprietorship, partnership, and corporation are a couple of the main business structures that where mentioned in the videos. Sole proprietorship Sole proprietorship is the easiest and most popular form of business structure with a multitude of advantages and disadvantages. A plus is that a sole proprietorship is the simplest and least expensive form of business structure an individual can establish ("SBA.gov," 2014). In a sole proprietorship the owner of the business
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to multiple locations geographically. Sole Proprietorship In a sole proprietorship a company is owned and operated by one person. The only advantage to sole proprietorship is the owner will obtain the profits that the business makes as well as it is not difficult to obtain a sole proprietorship. The main disadvantage to sole proprietorship is the owner’s personal assets are liable for all business encounters. Due to this fact, a sole proprietorship is never the optimal choice for a form of
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According to Kimmel, Weygandt, and Kieso (2009) business structures include sole proprietorships, partnerships, and corporations. The purpose of this paper is to review the advantages, disadvantages, tax implications, legal implications, and accounting implications of each type of business to decide an optimal structure for a new small business proposal, named “The Green Korean Cuisine”. Sole Proprietorship “A sole proprietorship is an unincorporated business owned by one individual (Anderson, Pope,
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entrepreneur can look into the following options: i) if you’re a lone ranger with a tight budget, your product probably won’t be making much profits in the near future and there’s not much risk of facing a lawsuit, you should consider setting up a Sole Proprietorship. ii) if you have a few partners joining the fray, where each of you are also starting out on a shoestring budget and there’s not much risk of facing a lawsuit, you should consider setting up a
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funds necessary to go into business alone so; I teamed up with another individual that I worked with, and we created a business plan, and now we are in a partnership. Throughout this paper, I will discuss the following business structures: sole proprietorship, LLC, a corporation, and partnership as well as give an analysis of each. I will also discuss my partnership in the nightclub industry and explain why it was the best organizational option for me. Even though the liability of the partners for
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