WGU C713 Study Guide (V.3) Unit 7 Questions and Answers 100% Verified
What are the common form of business organizations? ✔✔sole proprietorship, general partnership, limited partnership, C corporation or S corporation or a limited liability company
What is a sole proprietorship? ✔✔an unincorporated business with a single owner who pays personal income tax on profits earned from the business.
How is a sole proprietorship formed? How is it terminated? ✔✔to form: turn a profit, get all the right licences and permits. To terminate: 1. contact the local small business administration 2.inform employees. 3. provide termination notices to landlords. 4. pay any outstanding bills. 5.liquidate assets. 6. keep complete records.
What are some of the advantages and disadvantages of a sole proprietorship? ✔✔advantages: easy to create, autonomy, total ownership of business finances. Disadvantages:can only have one owner, impossible to pass on the business. Hard to raise capital. Seek funding from banks, taxation is challenging, unlimited liability.
- / 1