Do you think agency problems arise in sole proprietorships and/or partnerships?
Not what you're looking for?
Do you think agency problems arise in sole proprietorships and/or partnerships?
Purchase this Solution
Solution Summary
Do you think agency problems arise in sole proprietorships and/or partnerships?
Solution Preview
Discussion of basic concepts
Sole Proprietorship
This organization is owned by single person and is the simplest form of organization. He is fully responsible for all debts and obligations related to his or her business and have got unlimited liability.
Advantages
? Ease of formation
? Low start-up costs
? Less administrative paperwork than some other organizational structures (such as incorporation)
Disadvantages
? Difficulty raising capital
? Unlimited liability
? Lack of continuity in business organization in the absence of the owner
http://www.cbsc.org/servlet/ContentServer?pagename=CBSC_ON%2Fdisplay〈=en&cid=1085667968842&c=GuideFactSheet as retrieved on 25 Aug 2006 05:13:20 GMT.
2. Partnership
A partnership (also referred to as a general partnership) is a business arrangement where two or more people (who are not husband and wife) are owners of a business. Unlike a corporation, you do not need to file any documents with the state to make your business a partnership. A partnership is created by default, unless the business is specifically formed as some other type of business entity, such as a corporation, a limited liability company, or a limited ...
Purchase this Solution
Free BrainMass Quizzes
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Operations Management
This quiz tests a student's knowledge about Operations Management
Basics of corporate finance
These questions will test you on your knowledge of finance.