Sole ProprietorshipAnswer the following questions with complete sentences, in paragraph form. Most answers require more than one paragraph.What is a sole proprietor? Describe the advantages and disadvantages of operating a business as a sole proprietorship.Explain the liability aspect of a sole proprietor.What is a general partnership? Explain the 4 criteria of a general partnership.Describe the liability faced by general partners.What is a corporation? Who are the owners of a corporation?Describe the liability faced by the owners.Fred and Wilbur are good friends who want to start a construction business. Fred has amassed a very large personal savings and Wilbur has very little. They plan on hiring some employees, but both want to keep the managing of the business between themselves. The startup money will come from a bank loan, family and friends interested in investing or, as a last resort, Freds personal savings.In this example should Fred and Wilbur form a sole proprietorship, a general partnership or a corporation? Demonstrate your understanding of business organizations in your explanation.
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