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    Assignment For Atty, Curso

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    1. A sole proprietorship is owned and operated by a single individual who has full control and responsibility over the business. Profits benefit the sole owner directly. If the business incurs debts, the owner's personal assets are at risk. When the owner dies, the business may cease operations or be sold. 2. A general partnership involves two or more individuals who share ownership, management, profits, and unlimited liability for debts and obligations. If a partner dies, the partnership may continue or dissolve depending on the partnership agreement. 3. A corporation is a separate legal entity from its shareholders. Shareholders have limited liability and receive dividends based on shares owned. If a shareholder dies, ownership shares

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    Assignment For Atty, Curso

    Uploaded by

    paulppjm
    10 views2 pages
    1. A sole proprietorship is owned and operated by a single individual who has full control and responsibility over the business. Profits benefit the sole owner directly. If the business incurs debts, the owner's personal assets are at risk. When the owner dies, the business may cease operations or be sold. 2. A general partnership involves two or more individuals who share ownership, management, profits, and unlimited liability for debts and obligations. If a partner dies, the partnership may continue or dissolve depending on the partnership agreement. 3. A corporation is a separate legal entity from its shareholders. Shareholders have limited liability and receive dividends based on shares owned. If a shareholder dies, ownership shares

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    Assignment for atty, curso

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    1. A sole proprietorship is owned and operated by a single individual who has full control and responsibility over the business. Profits benefit the sole owner directly. If the business incurs debts, the owner's personal assets are at risk. When the owner dies, the business may cease operations or be sold. 2. A general partnership involves two or more individuals who share ownership, management, profits, and unlimited liability for debts and obligations. If a partner dies, the partnership may continue or dissolve depending on the partnership agreement. 3. A corporation is a separate legal entity from its shareholders. Shareholders have limited liability and receive dividends based on shares owned. If a shareholder dies, ownership shares

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views2 pages

    Assignment For Atty, Curso

    Uploaded by

    paulppjm
    1. A sole proprietorship is owned and operated by a single individual who has full control and responsibility over the business. Profits benefit the sole owner directly. If the business incurs debts, the owner's personal assets are at risk. When the owner dies, the business may cease operations or be sold. 2. A general partnership involves two or more individuals who share ownership, management, profits, and unlimited liability for debts and obligations. If a partner dies, the partnership may continue or dissolve depending on the partnership agreement. 3. A corporation is a separate legal entity from its shareholders. Shareholders have limited liability and receive dividends based on shares owned. If a shareholder dies, ownership shares

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Sole proprietorship General Partnership Corporation

    a. As ownership: It is a general partnership involves in two or As corporation it is a legal entity separate


    A sole proprietorship is a business more individuals who share ownership and from its owners that is known as
    and operated by a single individual. management responsibilities. Partners shareholders. the ownership is divided into
    The owner has full control and contribute resources and share profits and shares of stock and elect a board of director
    responsibility for the business’s losses. to oversee the company’s management.
    operation, profits and liabilities
    b. How investors earn a profit; In this partnership the profits are shared In a corporation the profits are earned by the
    In this sole proprietorship the sole among the partners according to the terms company and then distributed to
    owner will reaps all the profits that is outlined in the partnership agreement. shareholders in the form of dividend. So the
    generated by the business. Any Usually, partners distribute profits based on shareholders are receive dividends based on
    income the business generates their ownership percentage. The profits can the number of shares they own/
    directly benefits the owner. They can be taken as income, reinvested in the
    use these profits for personal business or a combination of both.
    expenses, savings or reinvesting in
    the business.
    C. Liability whether limited versus unlimited In a general partnership all partners share In a corporation shareholder have limited
    With this the owner has unlimited personal unlimited joint and several liability, this liability meaning that their personal assets
    liability for the business debts and means that each partner is not only are generally protected from the corporation
    obligations. This means that if the business responsible for their own actions and debts and legal obligations.
    incurs such as: savings, property etc. are at liabilities of the other partners.
    risk. The owner is personally responsible for
    settling a business-related liability.
    d. When the sole proprietorship dies In this general partnership if partners die the In this a corporation is a separate legal entity
    the business is typically considered partnership is usually dissolved unless the from its owner. when the shareholder dies,
    and extension of their personal partnership agreement specifies. The the corporation doesn’t cease to exist. The
    estate. The business may cease to surviving partners may decide to continue the ownership shares can be passed on the heirs
    operate or be sold or transferred to business with the consent of deceased or beneficiaries according to their will. Its
    heirs or the beneficiaries mentioned partnership estate. Alternatively, the continues operations under the management
    in the will partnership might be liquidated and the of the remaining shareholders and the board
    assets distributed among the partners or the of directors.
    heirs of the deceased.
    e. Advantages and disadvantages as Advantages: Advantages:
    formation Shared responsibility Capital formation
    Tax benefits perpectual existence.
    Advantages: easy formation Disadvantages: Disadvantages:
    Direct decision making and tax Conflict potential Capital formation and limited liabilities
    simplicity Limited life
    Disadvantages: Disadvantages:
    Unlimited liability Double taxation and Bureaucracy
    Limited resources
    Limited expertise
    f. Advantages and disadvantages as to Advantages: Advantages:
    raising a capital Share resources. Diverse skillset Flexibility Access to capital markets
    Advantages: Shared decision meeting, conflict potential Disadvantages:
    Control, flexibility, direct profits Complexity. Dilution and disclosure
    Disadvantages:
    Limited capital sources. Risk and
    Perception

    Hinampas / Assignment 1

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