Business Textbook Narration
Description
Vocal Characteristics
Language
EnglishVoice Age
Middle Aged (35-54)Accents
North American (General)Transcript
Note: Transcripts are generated using speech recognition software and may contain errors.
business textbook narration, advantages of sole proprietorships, freedom. Maybe the most important benefit of a sole proprietorship because they own their business. Sole proprietors answer to no one but themselves. Sole proprietorships are also easy to form. Sometimes you can go into business simply by putting a sign on the door. The simplicity, illegal setup procedures makes this form appealing to self starters and independent spirits, as do low start up costs. Another attractive feature is the tax benefits extended to businesses that are likely to suffer losses. In the early stages. Tax laws permit owners to treat sales revenue and operating expenses as part of their personal finances, paying taxes based on their personal tax rates. They can cut taxes by deducting business losses from income earned from personal sources other than the business disadvantages of a sole proprietorship. A major drawback is unlimited liability. A sole proprietor is personally liable for all debts incurred by the business. If the company fails to generate enough cash, bills must be paid out of the owner's pocket. Another disadvantage is a lack of continuity. A sole proprietorship legally dissolves when the owner dies, although the business can be recognized by a successor. Executors or heirs must otherwise sell its assets. Finally, a sole proprietorship depends on the resources of one person whose managerial and financial limitations may constrain the business sole proprietors often find it hard to borrow money to start up or expand. Many bankers fear that they won't be able to recover loans if the owner becomes disabled or insolvent