Lit1

In: Business and Management

Submitted By victor27
Words 1357
Pages 6
PART A
Sole Proprietor ­ This is the most common type of business ownership. It only requires one person, who can work by themselves or contract work out but does not have partners. 

● Liability ­ The business owner and business are seen as one. Whatever profits the business makes, the business owner makes. Also, whatever debts the business takes on, the owner is responsible for.

● Income Taxes ­ Because there is no difference between the owner and business, all business profits must be claimed on the owner’s personal taxes.
● Longevity/Continuity ­ The business can continue as long as the owner is alive. This type of business cannot be passed on.
● 

Control ­ The owner has the total control over the business. They make their own decisions. ● Profit Retention ­ Whatever the owner makes from the business is theirs to keep, however they usually will put some of the money back into the business.
● 

Location ­ No forms are necessary. Wherever the business owner sees fit, the business can move without issue.
● Convenience/Burden ­ The easiest business to start on your own however the owner is fully liable for anything that happens with the business.
 General Partnership ­ Two or more unincorporated people form a business and still have liability, as with a sole proprietorship. The benefit is that there are two (or more) people to share responsibility. ● Liability ­ Business owners and the business are still seen as one, same as in the sole proprietorship. Now the liability falls on two or more individuals.
● 

Income Taxes ­ All income is reported on owner’s personal taxes.
● Longevity/Continuity ­ This business can continue for as long as the owners wish. Also, partners can be bought out for their share in the business.
● 

Control ­ The control of the business is shared between the partners, although they can come up with an…...

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