Is this story: sole proprietorship, partnership, OR corporation?


When I was three years old, I started making candy with my grandmother. I am now 10 and I want to sell chocolate candy with a farm theme to my friends and family. My product ideas include Brown Cows (chocolate cows on a stick), Pigs in Mud (marshmallow dipped in caramel, nuts and chocolate) and Farm Eggs (jelly beans dipped in chocolate). The start-up expenses for my business are pretty small: a few candy molds, candy and chocolate.) My parents have agreed to loan me the money I will need and to let me work in the family kitchen. Schoolwork has to take priority over business so if I have more sales than I can handle, I will probably ask friends or my older brother to help. My brother is also pretty good at math and computers so he could help me with keeping track of my expenses and advertising. I really like the product development and packaging part of the business.


Respuesta :

It's a partnership. I have to write more words but that's what that arrangement is.

The story is about a sole proprietorship.

A sole proprietorship is a form of business organisation that is owned by a single person.  

Characteristics of a  sole proprietorship

1. it is owned by one person

2. The liabilities of the company is unlimited.

3. The business has a limited capacity to raise capital.  

Advantages of sole proprietorship

1. They are easy to establish

2. The entrepreneur has complete control over the business  

Disadvantages of sole proprietorship

1. The business ceases to exist when the business owner dies.

2. the owner has an unlimited liability.

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