BUS-101 Chapter Notes - Chapter 8: Limited Liability, Limited Partnership, Sole Proprietorship
Document Summary
Entrepreneurs are people who take risks to start a new business. Since the great recession in 2009, the usa has observed an annual net loss. Sole proprietorship: simplest form of business, 72% of all businesses, but only 4% of all sales receipts, small enterprises that are owned/managed by a single individual, advantages. All earning are treated as personal income, only taxes are national, state and local. No attention to corporate taxes: disadvantages. Owner bears the burden of any losses or liabilities. Resources needed to start-up are the responsibility of the owner. All debt is treated as personal debt. Failure of repayment opens the business up to possible seizure, even if the assets aren"t tied to the business. Partnerships: association of two or more persons to carry on as co-owners, both parties have to consent in order to form a partnership, each partnership must have at least one general partner. An equal right to be involved in management: limited partnership.
