Better Business, 5/e

Objective 6-1 Sole Proprietorships

1. Discuss the advantages and disadvantages of a sole proprietorship.

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Patty Jacobs runs a small cleaning business from her home. She has no employees, and she reports the business’s income and expenses on her personal income taxes. However, the business has begun to grow quickly, and she is considering hiring a few employees. She is concerned about the added liability she faces with an expanded business and new employees. As a sole proprietor, she knows that she is held ...