ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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franchises and multinationals
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nonprofits and cooperatives
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general and limited partnerships
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horizontal and vertical mergers
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Detailed explanation-1: -Unlimited liability Among one of the biggest disadvantages of a sole proprietorship is unlimited liability. This liability not only spans the business but the business owner’s personal assets. Debt collectors can access your savings, property, cars, and more to see a debt repaid.
Detailed explanation-2: -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-3: -A partnership has several advantages over a sole proprietorship: It’s relatively inexpensive to set up and subject to few government regulations. Partners pay personal income taxes on their share of profits; the partnership doesn’t pay any special taxes.
Detailed explanation-4: -No liability protection Although this can certainly be considered one of the benefits of sole proprietorship, it can also be a notable disadvantage. Without the legal protections associated with incorporating your business, you’re personally liable for any of your company’s legal, financial or tax problems.