ACTG 2P40 Lecture : day 11

What are the advantages and disadvantages of these businessorganizations

A) Sole proprietorship

B) Partnership

C) Corportion

D) Limited- Liability Company (LLC)

An owner who wants to have limited liability should form which type of business enterprise?

1. Partnership

2. Corporation

3. Proprietorship

4. sole proprietorship

Which one of the following statements concerning a sole proprietorship is correct?

a. The profits of a sole proprietorship are subject to double taxation.

b. The owner of a sole proprietorship is personally responsible for all of the company's debts.

c. There are very few sole proprietorships remaining in the U.S.A. today.

d. A sole proprietorship is the least common form of business ownership.