| A | B |
|---|
| Sole proprietorship | business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm |
| unlimited liability | owner is personally and fully responsible for all losses and debts of the business…..if business fails owner may lose Personal possessions to satisfy debts |
| inventory- | stock of finished goods and parts held in reserve |
| fringe benefits | employee benefits like paid vacations, sick leave, retirement, health & medical |
| partnership | business jointly owned by 2 or more people who share The profits and the responsibilities for the business |
| General partnership | ALL partners are responsible for management and financial obligations of a business : MOST common |
| Limited partnership | at least one partner is NOT ACTIVE in the daily running of the business (The LIMITED partner has LIMITED responsibility for debts and obligations of the Business |
| Articles of partnership | specify arrangement between partners formal, legal paper |
