MIE 201 Exam 2: Chapters 4, 5, 8 NCSU, Top Exam Questions and answers, 100% Accurate. VERIFIED.

MIE 201 Exam 2: Chapters 4, 5, 8 NCSU, Top Exam Questions and answers, 100% Accurate. VERIFIED. 3 types of business ownership - -- sole propreitorship - partnership - corporation sole proprietorships - -- businesses owned by one individual - the most common form of business organization in the United States - easiest and least expensive form of business to start - ex: tutoring/bookkeeping/landscaping etc... sole proprietorship advantages - -- simplicity - single layer of taxation - taxed at individual rates - privacy - flexibility and control - personal satisfaction - fewer limitations on personal income -complete ownership of the profits sole proprietorship disadvantages - -- unlimited liability - finite life span - resource limitations - limited managerial experience - demands on owner - no employee benefits for the owner -lack of qualified employees (can't match wage demands) Many sole proprietors will focus on ______ - -services (like child care, salons, etc) rather than on the manufacture of goods unlimited liability - -- means that the owner is personally and fully responsible for all losses and debts of the business - major drawback to a sole proprietorship or a partnership - from a legal standpoint the owner and business are one and the same definition of a partnership - -an association of two or more persons to carry on, as co-owners, a business for profit; profits will be divided as specified in the agreement types of partnerships - -- general