The Legal and Ethical Environment of Business: "Chapter 11, Section 1: Sole Proprietorships"

Read this section. Sole proprietorships are the most common form of business organization, with good reason. There are no formal requirements to start a sole proprietorship. What other advantages and disadvantages are there to starting a business as a sole proprietorship? As this section notes, there are challenges of borrowing money as a sole proprietor. Be sure you understand the issue of liability in sole proprietorships, as this will provide a foundation for discussions of limited liability forms of organizations in the following subunits.