BUSINESS ADMINISTRATION
ENTREPRENEURIAL DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Corporation
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Partnership
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Entrepreneurship
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Detailed explanation-1: -Sole Proprietorship This is a business run by one individual for their own benefit. It is the simplest form of business organization. Proprietorships have no existence apart from the owners.
Detailed explanation-2: -Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership? Corporations generally find it easier to raise capital.
Detailed explanation-3: -A sole proprietorship enables two or more people to be in control of a business. In a partnership, any losses will be shared by all the partners. People who own shares of a stock in a corporation are the owners of the corporation.
Detailed explanation-4: -The disadvantages of a sole proprietorship are the unlimited liability that goes beyond the business to the owner and the difficulty in getting capital funding, specifically through established channels, such as issuing equity and obtaining bank loans or lines of credit.