MIE 201 Exam 2: Chapters 4, 5, 8 updated to pass 2023/2024

MIE 201 Exam 2: Chapters 4, 5, 8Chapter 4 - correct answer Sole Proprietorship - correct answer - One owner - Individual income taxed - Unlimited liability - Owned by a single individual and is the easiest way to conduct business Advantages of Sole Proprietorship - correct answer - ease and cost of formation - secrecy - distribution and use of profits - flexibility and control of the business - most freedom from government regulation - taxation: taxed at individual income tax rates - easy to close business Disadvantages of Sole Proprietorship - correct answer - unlimited liability - limited source of funds - limited skills - lack of continuity - lack of qualified employees - taxation: pay a higher tax rate than do small corporations on income of less than $75,000 unlimited liability - correct answer The owner is personally and fully responsible for all losses and debts of the business Partnership - correct answer - Two or more owners