ENTREPRENEURSHIP

Detailed explanation-1: -It simply refers to a person who owns the business and is personally responsible for its debts. Barbers who own their shops, auto mechanics who are self-employed, a gardener who mows lawns for a fee. Owners can establish a sole proprietorship instantly, easily and inexpensively.

Detailed explanation-2: -The advantages of a corporation are limited liability, the ability to raise investment money, perpetual existence, employee benefits and tax advantages. The disadvantages include expensive set up, more heavily taxed, taxes on profits.

Detailed explanation-3: -What disadvantage of a proprietorship does the partnership form of business ownership solve? Because a partnership offers greater sources of financing, it overcomes the proprietor’s disadvantage of limited finical resources.

Detailed explanation-4: -Which best describes the difference between sole proprietorships and partnerships? Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.