chapter1

Question 1

Sole proprietorship

Answer 1

• a business owned and run by 1 person.

- Small with few employees (if any)

Question 2

Partnership

Answer 2

• Identical to sole ownership except has more than 1 partner.
• All partners are liable for firm’s debt
• Partnership ends when withdrawal/death of a partner

Question 3

Corporation

Answer 3

it’s a legally defined, artificial being. (a judicial person/legal entity) separate from its owners.

Question 4

Double Taxation

Answer 4

when both the company and shareholders get taxed