Please answer the Sole Proprietorship/Partnership questions in bullet-style (not
ID: 353065 • Letter: P
Question
Please answer the Sole Proprietorship/Partnership questions in bullet-style (not essay style). Please include the question you are answering and your answers must be in complete sentences. While there is no page length requirement, each question must be answered fully. Please double-space your answers.
That is the qustion, and I need answers. The subject is Business Law.
7. How do you raise capital for a sole proprietorship (more than 1 alternative is needed for this answer)?
8. In a general partnership what can partners contribute other than money as their capital contribution?
9. Do all partners in a general partnership have to work in the business to get a share of the profits and losses?
10. What happens in a sole proprietorship situation when the debts of the business cannot be paid from the assets of the business?
11. Who is responsible for paying the taxes for profits in a sole proprietorship? In a general partnership?
12. Do you need to have a written contractual agreement to have an enforceable general partnership situation?
13. What happens to a sole proprietorship if the owner dies?
14. What happens in a general partnership if one of the partners dies?
15. What happens if one of the partners wants to leave the business – can they, and do they need the permission/agreement of the remaining partners?
16. Are general partners automatically entitled to at least minimum wage or a salary of some kind because they work in the general partnership business?
Explanation / Answer
7) A sole proprietor can raise money for business by asking friends and family to invest in his business or can apply for loans.
8) In general partnership there can be a contribution of money in the form of capital investment or services in return for a share of the profits
9) in general partnership all partners have to work in business to get a share of profit and losses as there is no written agreement and if partners share profits equally in the absence of a written agreement, you could run into situations where you feel that you're doing all of the work, but your partner is still getting half of the profits.
10) If the debt cannot be paid from business assets in a sole proprietorship situation, creditors can and will take your personal assets
11) The sole proprietor is responsible for paying taxes on profits by sharing their business income on their personal tax returns. In general partnership the partners do pay income taxes in the same way.
12) The enforceable general partnership requires a written agreement because with any important legal relationship, oral agreements often lead to misunderstandings, which often lead to disputes.
13) The business cannot be continued in its original form. It can be transferred to another individual or legal entity depending on the last will of the proprietor
14) The partnership itself doe ant dies but changes into a different partnership.assest are sold to pay off creditors and remaining funds are distributed to remaining partners and the deceased partner's wife, as per his will.
15) Leaving a partnership requires planning and working with the remaining partners.
16) Yes because they are responsible for whatever income they earned from that business