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Choosing the Form of Ownership

Based on your knowledge of different forms of ownership, choose ONE form of ownership and support your choice using the factors stated below:

Form of Ownership chosen: [tex]$\qquad$[/tex]

\begin{tabular}{|l|l|l|}
\hline
No & \begin{tabular}{l}
Factors determining the choice of your \\
ownership
\end{tabular} & Explanations of each factor \\
\hline
7.1. & Capital contribution: & \\
\hline
7.2. & Liability of the business: & \\
\hline
7.3. & Continuity: & \\
\hline
7.4. & Taxation: & \\
\hline
\end{tabular}

Sagot :

GinnyAnsweridn
Choosing a form of ownership

Form of Ownership chosen: Sole Proprietorship

\begin{tabular}{|l|l|l|}
\hline
No & \begin{tabular}{l}
Factors determining the choice of your \\
ownership
\end{tabular} & Explanations of each factor \\
\hline
7.1. & Capital contribution: & Sole proprietorships usually require less capital to start. The owner provides the initial capital and has full control over the business.\ \\
\hline
7.2. & Liability of the business: & In sole proprietorships, the owner has unlimited liability, meaning personal assets are at risk if the business incurs debt or legal issues.\ \\
\hline
7.3. & Continuity: & Sole proprietorships do not have continuity beyond the life of the owner. The business ceases to exist if the owner dies or chooses to close the business.\ \\
\hline
7.4. & Taxation: & In sole proprietorships, business income is taxed as personal income. This simplifies the tax process since there are no separate corporate taxes.\ \\
\hline
\end{tabular}
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