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Sole Proprietorships

List and explain the advantages of sole proprietorships . . 4. Ease of start-up-small amount of paperwork, usually only need to obtain licenses, obtain a certificate of occupancy if not working at home, register a business if not using one's personal name.5. Relatively few regulations- may be subje

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Sole Proprietorships

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    1. Sole Proprietorships 1. Owned and managed by : single individuals 2. Percentage of U.S. businesses: 75 percent 3. Percentages of U.S. sales generated: 6 percent

    2. List and explain the advantages of sole proprietorships . 4. Ease of start-up-small amount of paperwork, usually only need to obtain licenses, obtain a certificate of occupancy if not working at home, register a business if not using one’s personal name. 5. Relatively few regulations- may be subject to zoning laws. 6. Sole receiver of profit 7. Full control of business 8. Easy to discontinue

    3. List the disadvantages of sole proprietorships 9. Unlimited personal liability- responsible for all your debts. 10. Limited access to resources- lack physical and human capital . 11. Lack of permanence- no one will maintain business but you

    4. (business license, certificate of occupancy, business organization, registration of business name) 12. (Business organization refers to an establishment formed to carry on a commercial enterprise. The other three items are typical requirements a sole proprietorship must meet.

    5. (liability, health codes, zoning laws, dangerous chemical codes) 13. Liability refers to the legally bound obligation to pay debts. The other three terms are examples of some regulations to which sole proprietorships may be subject.

    6. (human capital, fringe benefits, physical capital, financial capital) 14. Fringe benefits are payments other than wages or salaries. The other terms are examples of resources to which a sole proprietor may have limited access.

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