Question

Supply and Demand, Markets,entrepreneurs, Business & Labor

1. List 2 advantages and 2 disadvantages for each of the types of businesses: sole proprietorships, partnerships, and corporations.

2. List 2 economic rights and responsibilities of businesses including responsibilities of starting a small business.  

Answer 1

Answer 1, Two advantages of Sole proprietorship-

1. In this type of business owner is the sole beneficiary of profits.

2.Easy to form and sole proprietor can take better decisions for business success because there is no pressure from others.

Disadvantages-

1. The size of the sole proprietor business is small in operations.

2. All business risks and uncertainty needs to wear by the owner itself.

Two Advantages of Partnerships-

1. All business risks and uncertainties are shared by all partners, not by an individual.

2. By more partners, there will be more capital which can help in business expansion.

Disadvantages-

1.Unlimited liability which means partners property can also be sold out in case of debt and losses.

2. Conflicts can occur due to different thoughts and decisions by partners.

Two Advantages of corporations-

1. The owners are not liable for any corporation debt.

2. Funds can easily raise by issuing shares.

Disadvantages-

1. There is so much legal documentation and the is a must presentation of business annual reports to the public and government.

2. There is government interference in the corporations.

Answer-2  2 Economic rights and responsibilities of businesses including responsibilities of starting a small business are-

1.Rights

A. Businessman can start any production activities which is legal in-country.

2. Businesses can be set up in any part of the geographical boundary of a country.

2.Responsibilities-

A. Providing good quality of goods and services in the society.

B.Providing safe and healthy work environment to employees at workplace.