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Lit1 Task 1a

In: Business and Management

Submitted By adanna81
Words 1229
Pages 5
Task 1-A

Sole proprietorship 1. Liability An owner has unlimited liability both personally and as the company owner. Liability is a disadvantage in a sole proprietorship. 2. Income taxes
Owners are responsible for filing taxes and is allowed to file taxes as part of their personal income taxes. 3. Longevity This depends completely on the owner and there continued ability to operate the business. The operation of the business can be significantly affected if the owner becomes sick or dies.

4. Control owners have complete control of the business. The owner is totally responsible for all decisions pertaining for business operations.

5. Profit retention Owner have 100% profit retention. They may choose to invest it back into the company or use it for personal use.

6. Location The owner has the ability to choose the location of the business or move it to a better location as they choose.

7. Convenience/burden Sole proprietorships are very convenient and easy to start up since there are no governing laws as there may be with a corporation. The burden of the business including decisions made that may affect the businesses success are the sole responsibility of the owner.

General Partnership 1. Liability
Liability is shared by all partners of the business. Also, if one partner does something negligent pertaining to the business, all partners can be held liable for the one partners act. 2. Income taxes Partners are each responsible to report their own earnings on their own tax return. This is the amount they received from the company as income.

3. Longevity
Because the owner of a Sole Proprietorship and the business, are legally one and the same, when the owner of the business dies, the business legally ceases to exist. The business cannot be passed on to any heirs.

4. Control The owner…...

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