1. Identify the advantages and disadvantages of sole proprietorship, partnerships, and corporations. (include profits, liability, etc.)The advantages of a sole proprietorship are they are owned by one person, decisions can be made quickly, and they make all the profit for themselves; disadvantages are when a company comes into debt, the owner is liable for those costs on their own, and another disadvantage is the owner may not be qualified to do all of the work in their business. The advantages of a partnership is there are two people with different knowledge's that can be put together for a successful business, another advantage is they have greater earnings together and it's easy to organize business ideas. Disadvantages of partnerships are if a company goes into debt only one partner may be charged with the money needed, also, if a partner is no longer there, it is a great problem for the left partner.
In partnerships, the profits have to be shared. The advantages of a corporation are if the company falls into debt, the owner is not liable for the costs; the company's life is continuous even if the owner isn't there anymore. The disadvantages are they have a separate tax pay for being a corporation, forming the corporation itself can be very expensive, and employees feeling like they are not actually part of the company but just helping the owner.
2. List two different types of partnerships and describe each.
The two different types of partnerships are general partnership and limited partnership. General partnership is when the partners share everything evenly. They are both responsible for what happens to the company with profits and liability. Limited partnership is when a general partner accepts the full unlimited liability while the limited partner only is responsible for the investment they put into...