Advantages of a sole proprietorship - Answer Easy and inexpensive to form and dissolve, No profit sharing, Complete control of company, Few government regulations, Business profits taxed at personal level.
Disadvantages of a sole proprietorship - Answer Unlimited personal liability, Limite...
Accounting NAF Practice Exam With
Guaranteed Pass Solutions.
Advantages of a sole proprietorship - Answer Easy and inexpensive to form and dissolve, No profit
sharing, Complete control of company, Few government regulations, Business profits taxed at personal
level.
Disadvantages of a sole proprietorship - Answer Unlimited personal liability, Limited management
expertise, Limited access to capital, Extensive time commitments, Difficult to sell, Limited life
Advantages of a partnership - Answer Easy to form, Access to more capital, More management
expertise, Few government regulations, Business profits taxed at partner level, Easy to change owners
Disadvantages of a partnership - Answer Unlimited personal liability, Profit sharing, Potential
disagreements among partners, Difficult to sell, Limited life
Advantages of a corporation - Answer Limited personal liability, Management expertise, Easier to raise
capital, Easy to sell, Unlimited life
Disadvantages of a corporation - Answer More government regulations, double taxation, absentee
owners
Advantages of a LLC - Answer Limited personal liability, Management expertise, Unlimited life, Business
profits taxed at personal level
Disadvantages of a LLC - Answer More government regulations, absentee owners
IRS (Internal Revenue Service) - Answer A government regulatory agency that collects taxes, powers of
enforcement, can levy fines, confiscate property, mandatory relationship
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