Содержание
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Forms of business organization
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Sole proprietor
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Complete control over the operations Profits and losses flow directly to the owner Taxed at individual rates Easy to set up
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Unlimited liability Legal identity og the owner and legal identity of the business are not separate Getting out of business means selling the business Limited financial resource Lack of managerial skills and experience Responsible for the personal damages and debt an employee can cause Lack of continuity
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Partnership
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Clear potential for the enhancement of value resulting from two or more people combining their strength Easy to set up Fewer regulations than corporations Stronger potential of access to greater amounts of capital Taxed at individual rates
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Unlimited liability Limited continuity High possibility of conflicts between the partners which can lead to dissolving the partnership
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Unlimited commercial life Greater flexibility in raising capital through the sale of stock Easy to transfer ownership by selling stock Limited liability Regulatory restrictions Regulations can be costy High organizational and operational expenses Double taxation
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