ACCT 203 Lecture Notes - Lecture 10: Treasury Stock, Sole Proprietorship, Stock Split
Document Summary
Explain the primary characteristics of sole proprietorships, partnerships, and corporations corporations. Some of the primary advantages and disadvantages of each include: Sole proprietorships: advantages include ease of formation, due to less regulation than a corporation, There are three major forms of business enterprises: sole proprietorships, partnerships, and. 1 | p a g e and avoidance of double taxation. Disadvantages include unlimited liability for the owner and the difficulty of raising capital. Advantages include the ability to raise capital easier than for sole proprietorships and avoidance of double taxation. Disadvantages for sole proprietorships because each partner may be able to create liabilities for other partners). Lack of easy continuity of the entity can also be a problem. Advantages include limited liability, easy transfer of ownership, and greater ability to raise capital. Disadvantages include the potential of double taxation, greater regulation, and more complex management structure. include unlimited liability (it is worse than.
