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mezya [45]
3 years ago
6

How do a sole proprietorship and a corporation differ?

Business
1 answer:
timofeeve [1]3 years ago
6 0

Answer:

D. All of these are differences between the two type of business

Explanation:

The sole proprietorship is a business organzation owned, controlled and organized by one person.

Features of sole proprietorship

1. It is owned and controlled by one person

2. The owners is personally liable for all business debt.

3. Owners can establish a sole proprietorship instantly, easily, and inexpensively.

4. Sole proprietorships rarely survive the death of their owners.

5. Capital is limited since the business owner is the only provider of capital.

Features of Corporation

1. It protect its owners from personal liability for corporate debts and obligations.

2.A corporation has perpetual life, that is, when shareholders pass on or leave a corporation, they can transfer their shares to others who can continue a corporation's business

3. Corporation is owned by its shareholders and managed by its board of directors.

4. Corporations can raise capital more easily through the sale of securities.

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<u>projects</u>

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