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Lit1 Task 2

In: Business and Management

Submitted By utahboy37
Words 1809
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| Sole Proprietorship | Description | Sole proprietor is most common way of doing business owned by single owner not incorporated. | Two Advantages | Easy to create. No time or costs simply start doing business.Autonomy owner is the business. Easy to make decisions. Own hours, grow as big or stay little. Owner decides. | Two Disadvantages | If owner dies business dies. Only one person hard to raise capital.Because it is one person, if you don’t have individual wealth the business will have to suck funds from somewhere else. | Liability | Owner is 100% liable for the business, no difference between owner finances and business finances. | Income taxes | Taxes are same as owner/business. You would pay taxes through owner’s income. Taxes are one in the same. | Continuity of the organization | Easy to start, easy to shut down just finish all contracts pay off all debt and you can close down. | Control | Owner has all control on decisions. Owner may need to get local license and permits and operate within the law of the City, State, or country. | Profit retention | Would be managed through the owner’s personal finances and set up however they see fit to retain profits. |

| General Partnership | Description | Where two parties agree to go into business together. Often times taking different talents to add to the business. Similar to a Sole Proprietorship but two or more people. | Two Advantages | Two skill sets, two individual bank accounts. No formal or stated items to form a partnership, just two people getting together. | Two Disadvantages | Two people to make decisions need to agree on directions of the business.Same issue raise capital needs to come from partners. | Liability | Both parties assume all liability, unlimited liability can go after personal items.One partner may not be at vault but will be liable just like the other. | Income…...

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