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Business Organizations Task 1 Part A
1. Sole proprietorship: This type of business is known to be the easiest business for an individual to develop. A sole proprietorship is owned by one person, who is the person that will make the decisions in regards to the business and does not share any responsibilities with anyone else as the business owner.
• Liability: One person is liable for the debts of this type of business, this will include their personal assets if necessary.
• Income Taxes: Sole proprietorship is taxed as a single unit. There is no separate federal return needed for taxes.
• Longevity or continuity of the organization: If something tragic were to happen to the owner of a Sole proprietorship, the business will die as well. However, now there are insurance policies to assist the family in the event the business owner becomes deceased.
• Control: The person to initially start the business is in control. This person usually takes on multiple management positions such as finances, and sales.
• Profit retention: All profits from this type of organization belong to the sole owner of the business.
• Expansion and Location: Expansion and relocation of a Sole proprietorship is not generally recommended due to the limited resources the owner may have.
• Compliance, Convenience, and Burden: This type of business is generally simple, and inexpensive to start, thus it is the easiest and most common type of business.
2. General Partnership: A general partnership is when two or more individuals come together with their resources to form a business. These partners are both active within the business, and each take full liability for the business.
• Liability: A general partnership is similar to a Sole proprietorship when it comes to liability. The co-owners of the organization are equally responsible for the business assets.
• Income Taxes: General…...

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