GEOG 1200 Lecture Notes - Lecture 5: Sole Proprietorship, Legal Personality
Document Summary
Week 10: pros and cons of varying business organizations. A sole proprietorship is an unincorporated business organization that has only one owner. The advantages of a sole proprietorship is it"s the simplest form of business, the owner keeps all the profits, start-up costs are low, maximum privacy, and the owner has full control over decision-making. A partnership is a business carried out by two or more people, who share the same objective of making profit. A partnership is similar to a sole proprietorship in the sense of its simplicity, start-up costs are low, greater access to capital, partners" business affairs are private, and greater borrowing capacity. The disadvantages of a partnership are business partners are jointly and individually liable for the actions of partner, profits are shared, limitations on transferability, and partnership have limited life. A corporation is a distinct legal entity in law that is capable of assuming its own obligations.
