Question

question 3
1 pts
simone feels strongly about structuring her business as a sole proprietorship, but her best friend disagrees. when simone asks her friend to explain the disadvantages of sole proprietorship, what is one disadvantage that her friend may point out?
the business must collect sales taxes when applicable and forward those to the state treasury.
the daily business decisions are made entirely by the owner.
the law does not require sole proprietorships to register with the state or local government.
if a client, employee, or visitor is injured in a workplace accident, the sole proprietor is personally liable for the financial damages.

question 4
1 pts
what are the two types of business partnerships?
a general partnership and a limited liability partnership (llp)
a sole proprietorship and a corporation
a corporation and a limited liability corporation
a limited liability corporation and a basic partnership

question 5
1 pts

Explanation:

• Question 3:
• Sole proprietorships have unlimited liability. This means the owner's personal assets are at risk if the business faces financial obligations like damages from a workplace accident.
• Collecting sales taxes (first option) is a general business requirement, not specific to sole - proprietorship disadvantages.
• The owner making daily decisions (second option) is more of an advantage (autonomy) rather than a disadvantage.
• Not requiring registration (third option) is also an advantage (less paperwork).
• Question 4:
• Business partnerships are classified as general partnerships (where partners have unlimited liability and are actively involved in management) and limited liability partnerships (LLP, where some partners may have limited liability).
• A sole proprietorship (second option) is a different business structure (not a partnership).
• A corporation (second and third options) is a separate legal entity from a partnership.
• A limited liability corporation (third and fourth options) is not a standard type of partnership classification.

Answer:

• Question 3: If a client, employee, or visitor is injured in a workplace accident, the sole proprietor is personally liable for the financial damages.
• Question 4: a general partnership and a limited liability partnership (LLP)