BUS 212 Chapter Notes - Chapter 5: Sole Proprietorship, Limited Liability
28 Jun 2018
School
Department
Course
Professor
As described by Nickels, McHugh & McHugh (2016), unlimited liability can be a leading factor
in being high risk for owners holding sole proprietorships. Having that responsibility to cover all
expenses the company may accrue can damage the company in a significant way if not handled
correctly. When depending on a business to cover costs for employees or customers, owning a
business with sole proprietorship carries a different responsibility, especially when covering a
charge that exceeds income. Owners who supervise their risk and plan accordingly, can decrease
the size of an impact on the company regarding financial losses.
Reference
Nickels, W., McHugh, J., McHugh, S.. (2016). Understanding business. (11th ed). McGraw-Hill
Education.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
As described by nickels, mchugh & mchugh (2016), unlimited liability can be a leading factor in being high risk for owners holding sole proprietorships. Having that responsibility to cover all expenses the company may accrue can damage the company in a significant way if not handled correctly. When depending on a business to cover costs for employees or customers, owning a business with sole proprietorship carries a different responsibility, especially when covering a charge that exceeds income. Owners who supervise their risk and plan accordingly, can decrease the size of an impact on the company regarding financial losses.
