4-s Cybertext Microlearning 4-s

Introduction to Business Part E

Sole Proprietorships

Use your own paper, First, make a proper heading and lesson title. Create complete sentences for your answers and make certain that your answer in some way makes it clear what the question was. Example: If a question asks if the sun is shining, don't just say, "yes." Instead say, "Yes, the sun is shining." One more thing: Bonus questions are for extra credit and do not have to be answered.



01. What are the most common and simple to form business organizations?
02. Who forms sole proprietorships?
03. What three things are sole proprietors 100% responsible for?
04. How many owners are involved in a sole proprietorship?
05. Who else owns part of the sole proprietorship?
06. In a sole proprietorship who makes all the decisions (is the boss)?
07. What does it mean when it says the sole proprietor has great personal liability?
08. What happens to the sole proprietors personal wealth if the business is insolvent?
09. Why is the sole proprietorship considered risky business?
10. If a sole proprietorship is so risky, what the two main reasons there are so many of them?
11. In the eyes of the law, how do separate the sole proprietor as a legal person from his business?
12. What is true about the transferability of a sole proprietorship?
13. When a business ownership is transferred, what happens the former sole proprietorship?
14. Why is it difficult for a sole proprietor to raise capital (borrow money) for the business?
15. How is the sole proprietorship taxed?
16. How much income tax is paid by the business of a sole proprietor on its profits?
17. If a sole proprietor operates the business under a assumed or fictitious name, can the personal liability be limited?
18. What do most states do when a sole proprietor wants to operate a business under an assumed name?
19. How can a sole proprietor get help to properly register the fictitious name of a business?
20. What other things must a sole proprietor do beside register a fictitious name before operating a business in a community or city?
Bonus question: Many cities and counties require that the sole proprietor show proof of what before they will issue a occupational or business license?

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