The proprietor can maintain their own schedule. Growth or expansion is the sole decision of the owner. All profits from
Disadvantages of a sole proprietorships are, you can’t transfer or sell the business. When you die the business dies with you. If you plan to expand the business, you can’t bring in a partner. You have to have your own wealth to rely on, or take out a personal loan, which requires a big down payment and collateral. General
General partners, organized as a Partnership, are fully responsible for liabilities while Limited partners are not. Sole Proprietors are 100% responsible for the liabilities of the organization. The Rights, Responsibilities, and Legal Arrangement among Owners are also a significant part of the decision making process when deciding the type of organization to form. “State corporation laws specify the rights and responsibilities of corporations and their shareholders. Consequently, shareholders have no flexibility to alter their legal treatment with respect to one another, with respect to the corporation, and with respect to outsiders” (15-3).
The sole proprietor has the advantage of maintaining complete control over his or her business. Disadvantages: One of the greatest disadvantages to a sole proprietorship is the lack of cash flow or access to capital like loans or investors. They do not have the advantage of getting access to capital through bonds or shares and credit is based on their personal credit history. The lack of capital keeps purchase power restricted in comparison to corporations. Liabilities can be very heavy for sole proprietors depending on the nature of the business.
Disadvantages of the sole proprietorship include that the sole proprietor is held personally liable for the debts, and obligations of the business, all responsibilities for the business is at the discretion of the sole proprietor, and it is difficult to get investors. The sole proprietor is also responsible for the liabilities incurred by the employees ("The Basics of Sole Proprietorships,"
Developing a professional contract administration plan leaves no responsibilities to question. One of the biggest issues in every corporate setting is most employees want to delegate their responsibilities to others who work alongside them. A carefully thought out plan eliminates any room for
Legal Forms of Business Law/531 November 7, 2011 Sole proprietorship This is the simplest form of business organization. A Sole proprietorship is a one person business, and the owner is the sole proprietor of the business. A Sole proprietorship is easy to establish and takes low cost to start, depending on the type of business. In this kind of business the sole proprietor owns and does all the management of the business and business
Joint tenancy with rights of survivorship means that if one of the owners dies, the surviving owner(s) will gain full ownership over the real property. The benefit to taking title in this form is that the property will not be subject to probate which takes time and costs money (Joint 2009). In the case of Mr. and Mrs. Green, if one of them predeceases the other, the surviving spouse will gain full rights and access to the business. Real property includes the land owned by the Green’s and all things attached in a permanent nature to that land including minerals, buildings, and fixtures (Real Property). The types of real property the Green’s will encounter when starting the dry cleaning business are land and the air above and minerals below, the building facility that houses the business, and the fixtures that become permanently attached to the building (Mallor 2007).
Firstly, limited liability business shareholders are not liable for the business debt. This means they don’t have pay using they personal possessions if the business goes busted. Tesco is a limited liability company. Secondly unlimited liabilities means the owner have to take full responsibility over the business this means they have to use their personal belongings to pay off
The CFO for a corporation deliberately misstates expenses on the income statement purely out of a sense of loyalty to his CEO and the company. The CFO will receive no financial incentive for this misstatement. In fact, he risks losing his job by doing this. Is this an ethical violation for the CFO? Why or why not?