ANTA02H3 Chapter Notes - Chapter 4: Sole Proprietorship, Fanta, Indefinite Lifespan
Document Summary
Entrepreneurs have three options available when starting a business: sole proprietorship, partnership, and corporation. Business owned by one person (can have employees working for you) - independent decisions on where you want the company to go. - easy to set up, no mandatory regulating requirements and accounting needs. - if registered (if registered, your name is registered so no one can take it) sh if not, does not need to be registered management / ownership clear. Hard to get finance (hard to get bank loans) Lack of continuity (the business dissolves when the owner dies) Personal liability - you are personally responsible to pay any bills, settle any law- suits, and pick up all the pieces if things go wrong! (about the debts business, can be sued but only to what the business owns) Unlimited liability your personal responsibility is unlimited (suing the owner, losing cars and house)
