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CHAPTER 5 1A) Explain what a sole proprietorship is? 1B) State & summarize the advantages. 1C) State & summarize the disadvantages. 2A) Explain what a partnership it. 2B) State & summarize the advantages. 2C) State & summarize the disadvantages. 3A) Explain what a corporation is. 3B) State & summarize the advantages. 3C) State & summarize the disadvantages.
SOLE PROPRIETORSHIP -”A BUSINESS OWNED & MANAGED BY ONE INDIVIDUAL.” -ACCOUNT FOR 72% OF ALL BUSINESSES IN THE US. -THE OWNER HAS “UNLIMITED PERSONAL LIABILITY.” -ALL PROFITS & DEBTS ACCRUE TO THE OWNER. BILL HERLICKA
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PARTNERSHIP -”AN ASSOCIATION OF 2 OR MORE PEOPLE WHO CO-OWN A BUSINESS FOR THE PURPOSE OF MAKING A PROFIT.” -CO-OWNERS (PARTNERS) SHARE THE BUSINESS’S ASSETS, LIABILITIES, & PROFITS. -PARTNERSHIP AGREEMENT -”A DOCUMENT THAT STATES IN WRITING THE TERMS UNDER WHICH THE PARTNERS AGREE TO OPERATE THE PARTNERSHIP, & PROTECTS EACH PARTNER’S INTEREST IN THE BUSINESS.  SAM & MARIAH CALAGIONE
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CORPORATION -”A SEPARATE LEGAL ENTITY APART FROM ITS OWNERS WHICH RECEIVES THE RIGHT TO EXIST FROM THE STATE IN WHICH IT IS INCORPORATED.” -A GROUP OF INDIVIDUALS WORKING TOGETHER TO SERVE A VARIETY OF OBJECTIVES. -THE MAIN OBJECTIVE IS TO EARN LARGE, GROWING, SUSTAINED, LEGAL RETURNS ($$$) FOR THE PEOPLE WHO OWN THE BUSINESS.
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Chapter 5

  • 1. CHAPTER 5 1A) Explain what a sole proprietorship is? 1B) State & summarize the advantages. 1C) State & summarize the disadvantages. 2A) Explain what a partnership it. 2B) State & summarize the advantages. 2C) State & summarize the disadvantages. 3A) Explain what a corporation is. 3B) State & summarize the advantages. 3C) State & summarize the disadvantages.
  • 2. SOLE PROPRIETORSHIP -”A BUSINESS OWNED & MANAGED BY ONE INDIVIDUAL.” -ACCOUNT FOR 72% OF ALL BUSINESSES IN THE US. -THE OWNER HAS “UNLIMITED PERSONAL LIABILITY.” -ALL PROFITS & DEBTS ACCRUE TO THE OWNER. BILL HERLICKA
  • 3.
  • 4. PARTNERSHIP -”AN ASSOCIATION OF 2 OR MORE PEOPLE WHO CO-OWN A BUSINESS FOR THE PURPOSE OF MAKING A PROFIT.” -CO-OWNERS (PARTNERS) SHARE THE BUSINESS’S ASSETS, LIABILITIES, & PROFITS. -PARTNERSHIP AGREEMENT -”A DOCUMENT THAT STATES IN WRITING THE TERMS UNDER WHICH THE PARTNERS AGREE TO OPERATE THE PARTNERSHIP, & PROTECTS EACH PARTNER’S INTEREST IN THE BUSINESS. SAM & MARIAH CALAGIONE
  • 5.
  • 6. CORPORATION -”A SEPARATE LEGAL ENTITY APART FROM ITS OWNERS WHICH RECEIVES THE RIGHT TO EXIST FROM THE STATE IN WHICH IT IS INCORPORATED.” -A GROUP OF INDIVIDUALS WORKING TOGETHER TO SERVE A VARIETY OF OBJECTIVES. -THE MAIN OBJECTIVE IS TO EARN LARGE, GROWING, SUSTAINED, LEGAL RETURNS ($$$) FOR THE PEOPLE WHO OWN THE BUSINESS.
  • 7.