Sole Proprietorships

By Jonathan Ouaknine and Brandon Bermudez

Bell Ringer

Take 5 minutes to consider and write about the given topic. You will be asked to share. This will be collected.

What thoughts do you have on small businesses?

Basics and Entrepreneurship

A sole proprietorship is a company started and run by one person. This person is called an entrepreneur.

∆ The market is very easy to enter as an entrepreneur. Generally, there are three qualifications the entrepreneur must meet:

∆ Authorization – An entrepreneur needs a business license to start a company.∆ Site permit – If not operating out of home, they need another building to conduct

their work.∆ Name – If not using their own name, they need to register a name for their

company.∆ An entrepreneur needs certain qualities to be successful:

∆ Seek out responsibility∆ Are willing to take risks∆ Believe in themselves∆ Desire to reach their full potentials∆ Have high energy levels∆ Are upbeat and optimistic∆ Look forward to the future rather than the past∆ Value achievement over money∆ Maintain flexibility as they face new challenges∆ Strongly committed to their goals

Zoning Laws

Some sole proprietorships are subject to zoning laws. They state that there are separate residency and business zones.

Why are these laws convenient or inconvenient? Share your thoughts.

Disadvantages

A liability is the biggest disadvantage to sole proprietorships. A liability is a legally bound obligation to pay debts. For example, say you take out a loan to buy a equipment you need to conduct your business. Even if you don’t get any business, you still need to pay off that loan.

Sometimes, banks won’t give loans to new businesses, so entrepreneurs sometimes have to pay for their equipment out of their own pockets.

They lack permanence. They will always have a limited life due to different reasons.

What reasons could a sole proprietorship have to shut down? This will be discussed.

Quiz

What is a sole proprietorship? What is an entrepreneur?

What are the three basic qualifications that an entrepreneur must meet to start a sole proprietorship?

List the three disadvantages of sole proprietorship and explain them for the next three questions. Give examples and details from the lesson to support your answer.

You do not need to write the questions. Just answer in complete sentences.

Thank you on the behalf of Jonathan Ouaknine and Brandon Bermudez. Your participation was appreciated.

Have a nice day! :D