Nascla Contractors Guide (Virginia 8th Edition) & Virginia Uniform Statewide Building Code "USBC" (2000 Edition) Questions & Answers

What are some of the advantages of a sole proprietor? - ANSWER-Business can be sold at will Freedom in Decision Making Process Sole Ownership of Profits Low startup cost Simple Ownership Form Minimal Legal Restriction What are some of the disadvantages of a Sole Proprietor? - ANSWER-Less Available capital Unlimited Personal Liability Possible difficulty obtaining long term financing dissolution of the business in the event of the owner's death This is the relationship between two or more persons who join to carry on a trade or business. Each person contributes money, property,labor, or skill and each partner expects to share in the profits and losses of the business. - ANSWER-Is classified as a Partnership What are the two different types of partnerships? - ANSWER-General Partnership & Limited Partnership This partnership consists of one or more general partners and one or more limited partners. Limited partners have limited Liability in the company. In this partnership the partners have no personal liability for the business partnership. They are liable only for the previously agreed-upon contribution to or investment in the business. - ANSWER-Limited Partnership