When a person carries on business on their own without adopting any other form of business organization.
What are advantages and disadvantages of sole proprietorships?
ADVANTAGES:
Simple and easy to set up.
Easy to dissolve - stop carrying on business.
DISADVANTAGES:
Unlimited personal liability
How are sole proprietorships created?
The name must be registered if it is something other than, or more than, the propietor's personal name.
What is a general partnership?
A form of business organization that comes into existence when two or more persons carry on business together with a view of profit.
What is dissolution and how can it occur in a partnership?
Dissolution is the termination of the partnership relationship.
Occurs when:
One person gives notice of termination to the others.
A partner dies or becomes insolvent.
The partnership is set up for a specfic purpose or for a limited time, such as to operate a gardening business for one summer and that purpose has been achieved or that time has expired.