MIE 201 Exam 2: Chapters 4, 5, 8 Makanui NCSU Questions and Verified Answers | Passed A+ | Latest Update

3 types of business ownership : - sole propreitorship - partnership - corporation sole proprietorships : - businesses owned by one individual - the most common form of business organization in the United States - easiest and least expensive form of business to start - ex: tutoring/bookkeeping/landscaping etc... sole proprietorship advantages : - simplicity 2 - single layer of taxation - taxed at individual rates - privacy - flexibility and control - personal satisfaction - fewer limitations on personal income -complete ownership of the profits sole proprietorship disadvantages : - unlimited liability - finite life span - resource limitations - limited managerial experience - demands on owner - no employee benefits for the owner -lack of qualified employees (can't match wage demands) Many sole proprietors will focus on ______ : services (like child care, salons, etc) rather than on the manufacture of goods 3 unlimited liability : - means that the owner is personally and fully responsible for all losses and debts of the business - major drawback to a sole proprietorship or a partnership - from a legal standpoint the owner and business are one and the same