Match the following forms of enterprise to their respective characteristics: Sole proprietorship | All partners are liable for each other’s decisions; Limited company | Ability to... Match the following forms of enterprise to their respective characteristics: Sole proprietorship | All partners are liable for each other’s decisions; Limited company | Ability to issue shares; Partnership | Unlimited liability.
Understand the Problem
The question is asking to match different forms of enterprise (Sole proprietorship, Limited company, Partnership) with their corresponding characteristics (liability, ability to issue shares). This involves understanding the definitions and traits of each type of business structure.
Answer
Sole proprietorship - Unlimited liability, Partnership - All partners liable, Limited company - Issue shares
Sole proprietorship - Unlimited liability, Partnership - All partners are liable for each other’s decisions, Limited company - Ability to issue shares
Answer for screen readers
Sole proprietorship - Unlimited liability, Partnership - All partners are liable for each other’s decisions, Limited company - Ability to issue shares
More Information
Each form of business has distinct characteristics: sole proprietorship involves the owner having personal responsibility for all business debts, partnerships imply shared liability among partners, and companies can issue shares as a way to raise capital.
Tips
Confusing unlimited liability with features of companies can lead to mistakes; ensure understanding of liability implications for partnerships and sole proprietorships.
Sources
- Forms of Business Ownership - Saylor Academy - learn.saylor.org
- 6. Chapter 6 Forms of Business Ownership - VIVA's Pressbooks - viva.pressbooks.pub
- Business Entities - Law Offices of Edward R. Hearn - internetmedialaw.com
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