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Why might a bank be more likely to loan money to a partnership than to a sole proprietorship?
Wiki User
∙ 12y ago
The reason why partnerships are able to attract more capital than sole proprietorship, is because the article of partnership may specify that the profit be divided equally or by any other arrangement suit able to the partners and proprietorship state ahead in time in the papers that how the profits (losses) will be divided.
Wiki User
∙ 14y ago
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What is initial cost?
An initial investment is the amount of money a company, business, franchise, partnership, or sole proprietorship starts out with to expand their company or business in the beginning.
What is the difference between a General Partnership and a limited Partnership?
In a limited partnership, a limited partner can be held liable for only the amount of money he or she invested in the company. In a general partnership, the individual liability for debts is the partner's share of the total amount of debts accrued by the partnership. In the USA individuals wishing to operate a business under a partnership, can choose to form three types of partnership: general partnership, limited partnership and limited liability partnership. In a general partnership the partners are responsible for all aspects of the business including the debts of the partnership. In a limited partnership there are two types of partners - general and limited. Each type of partner has different rights and responsibilities. Generally speaking, there is a limit on the liability of a limited partner, while the general partner's liabilities are not limited. A limited partnership consists of one or more general partners (i.e., those who are generally liable for the business) and one or more limited partners (i.e., those who have limited liability). If the statutory requirements are not followed, a limited partnership will be treated as a general partnership; therefore, it is important that you consult with an attorney in creating a limited partnership. LPs are created by filing an statement of registration with the Secretary of State, Corporations Division.For more information about General Partnerships and Limited Partnerships, you can follow the link below.A limited liability partnership protects the personal assets of the partners from creditors. In a traditional partnership, it may be possible for creditors to collect debts from the personal assets of the partners.
How do other countries make money?
As like many of us Americans, they work for their money. The money made may not look like ours but it's still money. They might work harder of less than us but most likely they are making about the same as middle class ranking people.
Why was marakanda a prosperous city?
good resources and trade routes most likely
What is a business partnership?
Two people (or more) forming a company on equal terms is a business partnership.2 or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profit among themselves.2 or more persons may also form partnership for the exercise of a profession. (Article 1767 of the Civil Code)where two or more peopole come together to open up a buisness
Why is it easier for a partnership to borrow money and to hold good employees that it is for a sole proprietorship to do so?
A partnership has more stability and access to more assets.
Why is it easier for a partnership to borrow money and to hold good employees than its is for a sole proprietorship to do so?
A partnership has more stability and access to more assets.
Why is it easier for partnership to borrow money and to hold good employees than it is for a sole proprietorship to do so?
A partnership has more stability and access to more assets.
Why is it easier for a partnership to borrow money and hold good employees than it is for a sole proprietorship to do so?
A partnership has more stability and access to more assets.
Characteristics of business organization?
Businesses operate to make money. A business can be a proprietorship, partnership or a corporation. The structure of the business is determined by the owners.
What is initial cost?
An initial investment is the amount of money a company, business, franchise, partnership, or sole proprietorship starts out with to expand their company or business in the beginning.
Which of the following is an advantage of a partnership over a sole proprietorship?
The question is incomplete. There are no options given (for "which of the following") to answer this question.
What would happen if there were no shareholders?
The company hasn't issued stock:thus it is a proprietorship (one owner) or a partnership (at least two ) who have put money up. Generally, but not always, this means limited capital to fund expansion so the company stays small.
Will smosh quit?
Of what I know, smosh is not going to quit. Of what i can tell, they have fun and most likely have no plans to quit. (it is kind of their job, since they earn money with their partnership) :)
What of the following is a disadvantage of owning a sole proprietorship?
May have difficulty raising money for business operations
What are the features of sole proprietorship business?
The features of sole proprietorship is that you can keep all of your profits and spend it any way you want it. But you would have to pay everything by your self. Say if you own a pet store that grooms them. And a customer is not satisfied, the customer could sue you and you would be liable for the debts. You might even have to sell some belongs to get the money.
What is an example of a businessman making an investment...?
he contributes money to a partnership
