Law 294 - Chapter 21

  1. What is a sole proprietorship?
    When a person carries on business on their own without adopting any other form of business organization.
  2. What are advantages and disadvantages of sole proprietorships?

    • Simple and easy to set up.
    • Easy to dissolve - stop carrying on business.


    Unlimited personal liability
  3. How are sole proprietorships created?
    The name must be registered if it is something other than, or more than, the propietor's personal name.
  4. 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.
  5. 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.
Card Set
Law 294 - Chapter 21
Basic forms of business organizations