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    This document summarizes different forms of business including sole proprietorships, partnerships, and corporations. It outlines key advantages and disadvantages of each form. Sole proprietorships are easiest to start but provide unlimited liability. Partnerships provide tax advantages and shared control but reputation can be affected by one partner. Corporations provide limited liability and easier capital raising but have more complex tax and ownership structures.

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    Homework Chapter 1- Vo Anh Sieu

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    This document summarizes different forms of business including sole proprietorships, partnerships, and corporations. It outlines key advantages and disadvantages of each form. Sole proprietorships are easiest to start but provide unlimited liability. Partnerships provide tax advantages and shared control but reputation can be affected by one partner. Corporations provide limited liability and easier capital raising but have more complex tax and ownership structures.

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    © All Rights Reserved
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    7 views3 pages

    Homework Chapter 1 - Vo Anh Sieu

    Uploaded by

    sieu vo
    This document summarizes different forms of business including sole proprietorships, partnerships, and corporations. It outlines key advantages and disadvantages of each form. Sole proprietorships are easiest to start but provide unlimited liability. Partnerships provide tax advantages and shared control but reputation can be affected by one partner. Corporations provide limited liability and easier capital raising but have more complex tax and ownership structures.

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    © All Rights Reserved
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    of 3

    CHAPTER 1 HOMEWORK

    TEACHER : Tran Quoc Trung

    LAW OF ENTERPRISE 2020

    2145519132-VÕ ANH SIÊU


    September 17th ,2021
    1

    1.FORM OF BUSINESS

    A. Sole proprietorship
    B. Partnership
    C. Corporation

    2. ADVANTAGE AND DISADVANTAGE

    A. Sole Proprietorship
    ● Advantage

    -- Easiest to start

    - Least regulated

    - Single owner keeps all the profits Taxed once as personal income

    ● Disadvantage

    -Limited to life of owner

    - Equity capital limited to owner's personal wealth

    - Unlimited liability Difficult to sell ownership interest

    A. Partnership
    ● Advantage
    2

    -Simple to establish

    -Tax advantage

    - Share control to make easier for management

    ● Disadvantage

    -The company's reputation before its partners is partly affected by the limited liability
    regime.

    -Subject to stricter regulation of the law than a sole proprietorship or partnership.

    - There is no right to issue shares to raise capital.

    B. Corporation
    ● Advantage

    - Limited liability Unlimited life

    - Separation of ownership and management

    - Transfer of ownership is easy

    - Easier to raise capital

    ● Disadvantage

    - Separation of ownership and management -Double taxation (income taxed at the


    corporate rate and then dividends taxed at the personal rate)

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