Sole Partnership

Business Environment
Karen Neal
AIU ONLINE

Abstract
In this article you will read about starting your business. You will read about sole proprietorship, if you think you would want to go that route. Then there is having a partnership and the pros and cons about having a partner. You might decide to incorporate your business; you will read the advantages and disadvantages of incorporating your business.

My scenario is based on the 3 prong power cord for electrical appliances there is a 2 prong out on the market for lower quality appliances, however I would mostly use a special technology to start the business. I could go with sole proprietorship “it is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business.” As an owner I would receive all the profits and will be responsible for any of the debts and loss of the business. The advantage of a sole proprietorship is that I have the ability to raise capital either publicly or privately, and be able to control the personal liability of the officers and manager, with no risk to the investors. However there are some disadvantages also   of sole proprietorship , like raising the capital because a unrelated investor has less of peace on mind when it concerns the use and security of their investment and it more difficult to formalize,   another disadvantage is unlimited liability that where I could have my personal assets taken away. When My business becomes successful, the risks accompanying the business will grow most likely] .
  If I would decide to have a partnership there are some advantages and disadvantages, “It can be cost –effective as each partner specializes in certain aspects of their business” it would also bring moral support and be more creative. Legal fees would be drawn up a partnership agreement are higher than those for a sole proprietorship, but it might lower than incorporating.   However disadvantages of a...