LGS 200- ABIGAIL HAMMOND- EXAM 3 QUESTIONS
AND ANSWERS GRADED A+ 100% VERIFIED.
What is critical to the growth of most small
businesses? ANS >>> Raising capital
What allows the owner to retain full ownership and
control of his/her business? ANS >>> Obtaining a bank
loan
Loans with desirable terms may be available from
what? ANS >>> Small Business Administration (SBA)
,One SBA program provides loans up to $25,000 to
the following businesspersons: ANS >>> - Women
- Low-income individuals
- Members of minority groups
Sole proprietorship ANS >>> The simplest form of
business organization, in which the owner is the
business.
Where must the owner of a sole proprietorship
report business income? ANS >>> On his/her personal
income tax return
Who is legally responsible for all debts and
obligations incurred by the business? ANS >>> The
owner
,What kind of account is a sole proprietor allowed to
establish that is tax-exempt until the funds are
withdrawn? ANS >>> Retirement accounts
The sole proprietor is free to make any decision she
or he wishes concerning the business, including: ANS
>>> - What kind of business to pursue
- Whom to hire
- When to take a vacation
True or false: The sole proprietor can sell or transfer
all or part of the business to another party at any
time without seeking approval from anyone else. ANS
>>> True
Does a sole proprietorship allow less flexibility than
a partnership or corporation? ANS >>> No, it allows
more flexibility
, What is the major disadvantage of a sole
proprietorship? ANS >>> The proprietor alone bears the
burden of any losses or liabilities incurred by the
business
Personal Assets at Risk ANS >>> Creditors can pursue
the owner's personal assets to satisfy any business
debts.
Lack of Continuity and Limited Ability to Raise
Capital ANS >>> - The sole proprietorship has the
disadvantage of lacking continuity after the
proprietor's
- Another disadvantage is that in raising capital, the
proprietor is limited to his or her personal
funds and any loans that he or she can obtain for
the business.
AND ANSWERS GRADED A+ 100% VERIFIED.
What is critical to the growth of most small
businesses? ANS >>> Raising capital
What allows the owner to retain full ownership and
control of his/her business? ANS >>> Obtaining a bank
loan
Loans with desirable terms may be available from
what? ANS >>> Small Business Administration (SBA)
,One SBA program provides loans up to $25,000 to
the following businesspersons: ANS >>> - Women
- Low-income individuals
- Members of minority groups
Sole proprietorship ANS >>> The simplest form of
business organization, in which the owner is the
business.
Where must the owner of a sole proprietorship
report business income? ANS >>> On his/her personal
income tax return
Who is legally responsible for all debts and
obligations incurred by the business? ANS >>> The
owner
,What kind of account is a sole proprietor allowed to
establish that is tax-exempt until the funds are
withdrawn? ANS >>> Retirement accounts
The sole proprietor is free to make any decision she
or he wishes concerning the business, including: ANS
>>> - What kind of business to pursue
- Whom to hire
- When to take a vacation
True or false: The sole proprietor can sell or transfer
all or part of the business to another party at any
time without seeking approval from anyone else. ANS
>>> True
Does a sole proprietorship allow less flexibility than
a partnership or corporation? ANS >>> No, it allows
more flexibility
, What is the major disadvantage of a sole
proprietorship? ANS >>> The proprietor alone bears the
burden of any losses or liabilities incurred by the
business
Personal Assets at Risk ANS >>> Creditors can pursue
the owner's personal assets to satisfy any business
debts.
Lack of Continuity and Limited Ability to Raise
Capital ANS >>> - The sole proprietorship has the
disadvantage of lacking continuity after the
proprietor's
- Another disadvantage is that in raising capital, the
proprietor is limited to his or her personal
funds and any loans that he or she can obtain for
the business.
