sole proprietorship
...his is called the retention of profits. Despite all the flexibility of having one owner most disadvantages stem from that same fact. Some individuals have many management skills and some don’t so some are at a higher risk than others. Another disadvantage is unlimited liability. Unlimited liability is a legal concept that holds the owner personally responsible for all debts of the business. If an owner were to die the business would cease to exist because a lack of continuity, who would run the day to day operations. The other type of organization I am going to discuss is a general partnership, a general partnership is a business co-owned by two or more general partners who are liable for everything the business does. There are general partners and limited partners. A general partner assumes unlimited liability for all debts where as a limited partner has no liability for losses beyond his investment. The advantages of a partnership are that they are easy to start up, and that there is a large availability of capital because partners can pool their capital together. Banks and suppliers will also be willing to grant larger loans to a partnership than to a sole proprietorship. You c...