Today’s Schedule – 10/2
•PPT: Sole proprietorships
•Cont. working on Entrepreneur Bios
•HW
–Entrepreneur Bio
Sole Proprietorships
•Business owned and managed by asingle individual
–Responsible for all profits anddebts
–75% of all businesses in America
–6% of all sales in America
Advantages
•Ease of start-up
–Obtain business license (authorizationfrom govt.)
•Possibly a special license (doctor, daycare, etc.)
–Site permit for location of business
•Not necessary if operating out of home
–Business name
Advantages
•Few Regulations
–Health codes
–Zoning laws (designated areas forhomes/businesses
•Sole receiver of profit
•Full Control
•Easy to stop
Disadvantages
•Liability- obligation to pay debts
•Limited access to resources
–Unwillingness of banks to offer financing
•Limited lifespan
•Difficulty finding good employees
–Lower wages to attract employees
–Fewer benefits