8.1 Guided Reading

A sole proprietorship is not _____hard_____, so it is ready for business as soon as operations are set up, and the owner keeps all the _____profit_____

• hard, profit

• easy, loss

• difficult, revenue

• complex, expenses

A sole proprietorship is easy to _____ and it is _____, because the owner does not have to confer with or answer to anyone else before making a decision.

• start, manageable

• end, complicated

• sell, risky

• join, profitable

A sole proprietor does not have to pay separate business income _____ and can _____ close down the business.

A sole proprietor has unlimited _____ for his or her business, which means that he or she is fully responsible for all of the businesses loses and debts. A sole proprietor may also have trouble raising needed _____ .

Because of _____limited_____ financial _____capital_____, the sole proprietorship may have trouble hiring the employees it needs and carrying enough _____stock_____ to satisfy customers or to keep production flowing smoothly.

• limited, capital, stock

• unlimited, resources, inventory

• restricted, funds, supply

• abundant, assets, goods

In a _____ partnership, all partners are responsible for the business’s finances and _____ obligations.

• general, obligations

• limited, profits

• silent, losses

• joint, shares

In a __limited__ partnership, at least one __partner__ is not active in running the business and has limited responsibility and __limited__ liability.

• limited, partner, limited

• general, owner, unlimited

• joint, associate, partial

• silent, investor, shared

A __partnership__ may be formed with a handshake, formal __legal__ papers are usually drawn up to make the business arrangement official.

Partnerships are easy to start and, because each partner brings a different area of expertise, generally easy to __manage__; they have an easier time attracting __capital__ than does a sole proprietorship.

• manage, capital

• control, resources

• govern, funds

• operate, investments

One downside to a general partnership is that all partners are ___ for the acts of all other partners and have unlimited ___ for the business’s debts and losses.

• responsible, liability

• liable, responsibility

• accountable, assets

• insured, coverage