Sole Proprietorships & Partnerships

Front

What is a sole proprietorship?

Back

A sole proprietorship is a type of business structure where an individual owns and operates the business as a single entity.

Front

Name one characteristic of a sole proprietorship.

Back

Single ownership

Front

What are the advantages of partnerships?

Back

Shared resources and expertise, shared risks and responsibilities.

Front

List one disadvantage of a sole proprietorship.

Back

Unlimited liability

Front

How is a sole proprietorship formed?

Back

An individual starts a business on their own without any formal legal structure.

Front

What are the rights of partners in a partnership?

Back

Partners in a partnership have the right to share profits and losses and participate in management decisions.

Front

What do partnerships draw up to specify how profits and responsibilities will be divided?

Back

Articles of Partnership

Front

What is the main difference between a sole proprietorship and a partnership?

Back

Number of owners

Front

What is the liability of a sole proprietor?

Back

Unlimited

Front

What is the liability of partners in a partnership?

Back

Unlimited