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A disadvantage of organizing a business as a sole proprietorship?
If your business fails with debts you are personally liable. You only have yourself to blame.
Why are entrepreneur considered risk taker?
because entrepreneurs are the only person who is liable in taking care of the business he may establish, whether the business will succeed or not.
Why are entrepreneur considered a risk takers?
because entrepreneurs are the only person who is liable in taking care of the business he may establish, whether the business will succeed or not.
Why do many business owners prefer corporations over other forms of business organization?
If a business is a sole proprietorship (one owner) or a partnership (more than one owner) and it fails financially then the owners can be liable for the debts of the business. This means that any assets (houses, cars, personal bank accounts) can be seized and sold to satisfy the creditors of the business. However, if the business is incorporated (Inc.) then if it fails only the assets held by the corporation itself can be attached. The "officers" of the corporation (usually the true owners) are not liable for the debt as long as they did not do anything illegal within the framework of the business/corporate contract. So by incorporating the owner is protecting his personal assets as separate from the business.
Which of the following is not true of a sole proprietor?
Only the business can be held liable, not the individual.
Can you sue someone if you park in their driveway and someone hits you?
No. The only person who is liable is the person who hit your vehicle.
If you co sign for an auto loan and the person you co signed for is in an accident can you as the co signer be liable for injuries or damages?
No, you can only be liable for the loan. If the car was totaled and did not have insurance then you can be held responsible for the balance on the loan. Any accident or damages that occurred would be the responsibility of the driver/owner of the vehicle. All your signature did was say that you will pay the loan if the borrower fails to do so.
Is it illegal to publish something without consent?
It would be a violation of copyright law. Only the person that created the work has the ability to determine how it is published. You do not need permission to publish information about a person that is true, otherwise you may be liable for liable.
Is Kenya government liable in tort or contract?
The Kenyan government can be held liable in both tort and contract. In tort, the government may be liable for negligence if it fails to exercise reasonable care and causes harm to individuals or property. In contract, the government can be held liable for breaching contractual obligations entered into with individuals or entities.
When only one person owns a business it's called?
Sole Proprietorship is a business owned by one person
A wife divorces her husband she isn't on any paperwork for the business is she still liable for any debt incurred by the business up to and including the IRS?
If the business is a sole proprietorship or partnership, then the only debts or liabilities will belong to the individuals who are indicated on the Business Resolution. This is a C-Corporation and two parties own the business that are not related If the wife is not on the corporate resolution (signature) and was never authorized to incur debt or make contracts on behalf of the business, then she is held harmless (not liable).
Can owner of a company be held personally liable?
The owner can be held personally liable for business debts, but it depends on the business structure and what type of contract the owner holds. If the owner is operating a sole proprietorship (he/she is the only owner), the owner and the business are technically considered the same entity, meaning the owner has full personal liability for any business debt. In a partnership, the business belongs to each partner, meaning that business debt also belongs to each partner personally. Each partner is liable for 100% of business debts. The only time an owner is not held personally liable for debts is in a corporation or LLC. In both of these cases, the business and owner are considered separate entities and, in theory, the owner could have no personal liability for business debt. Liability could occur if the owner has signed a personal guarantee, has offered his/her property as collateral, has signed a contract in his/her own name, he/she uses personal loans or credit cards to fund the business, or there is some sort of fraud or sloppy record-keeping.
