Name ___Lauren SutherlandChapter 51. Most people who start businesses in the United States are sole proprietors. What are the advantages and disadvantages of sole proprietorships?Some advantages to sole proprietorship is you are your own boss, can pick your hors, take take out a person loan, and no special taxes. While some disadvantages is difficult to raise money, limited resources, and if you lose money its your fault.2. Why would unlimited liability be considered a major drawback to sole proprietorships?Unlimited liability would be considered a major drawback to sole proprietorships because you have to pay them even if you have to sell everything you have such as your house. 3. What is the difference between a limited partner and a general partner?The difference between limited partner and general partner is limited partner is a partnership with one ore more general partners and one more more limited partners. While general partners is an partnership which all owners share in operating the business and assuming liability for the businesses debt. 4. What are some of the advantages and disadvantages of partnerships?Some advantages of partnership is more financial resources, shared management and pooled skills and knowledge, longer survival, no special taxes. While some disadvantages of partnerships is unlimited liability, sharing profits, difficult to terminate, disagreement among partners. 5. What are the major advantages and disadvantages of incorporating a business?Some of the major advantages of incorporating a business is limited liability, ability to raise more money for investment, size, ease of ownership change, and separation ofownership from management. While the disadvantage is initial cost, double taxation, extensive paperwork, and difficult to terminate.6. What is the role of owners (stockholders) in the corporate hierarchy?The role of owners in the corporate hierarchy is the stockholders elect the board of director of a company who selects management to control the company.7. If you buy stock in a corporation and someone gets injured by one of the corporation’s products, can you be sued? Why or why not?If I was to buy stock in a corporation and someone gets injured by one of the corporation product’s they can be sued. They can be sued only for what the injured person has invested into the company.8. Why are so many new businesses choosing a limited liability company (LLC) form ofownership?There are so many new businesses choosing a limited liability company form of ownership because there is limited liability, choice of taxation, flexible ownership rules, and operating flexibility.9. What are some of the factors to consider before buying a franchise?Some factor to consider before buying a franchise is large start up cost, shared profit, financial advice and assistance, and personal ownership.10. What opportunities are available for starting a global franchise?Some opportunities that are available for starting global franchise is in domestic
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