Sole Proprietorship Essay

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1. Sole proprietorship – Provide an example of a sole proprietorship in your town or community. What might be some advantages to owning this business? What are some of the biggest challenges that the owner likely faces? 2. Partnership – Provide an example of a partnership in your town or community. What are the advantages to this form of business organization? What might be some challenges of being a partner in a partnership? 3. Corporation – Provide an example of a corporation. What are the advantages and disadvantages of this form of business? How do the challenges compare to those of sole proprietorships and partnerships? I have a cousin who owns her own cleaning business and have sole proprietorship. When she first started the business it was quite easy. She didn’t know the outcome of the business but she was taking a chance. It started out easy but with little pay and as her clients grew it got much harder but with higher pay. The disadvantages and the challenges are the fact that she has to pay everything herself and in the end she has no money left for herself. Also there’s unlimited liability, lack of continuity, lack of money and limited management. But the advantages are she owns everything. All the profits come to her and half the time she was working by herself. She gets to say when she goes to work and when she doesn’t. She decides what hours she works and she can be more flexible with home life as much as possible.Pride of ownership, retention of all profits, and no special taxes. I have a family friend who went from 0 to 100 when she opened up her own tax business. She is in partnership with her husband and the business has sky rocketed. The disadvantages of her being in partnership with her husband are the fact that you have to know when to separate business life and personal life. A lot of things can go wrong when you when you involve

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