Difference between revisions of "Sole proprietorship"
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| − | [[Sole proprietorship]] (or, simply, [[proprietorship]]) is a type of business organization that has one owner who assumes [[unlimited liability]]. That means that this owner is personally liable for paying the business' debt. | + | [[File:Org-forms.png|400px|thumb|right|[[Legal organizational entity]]]][[Sole proprietorship]] (or, simply, [[proprietorship]]) is a type of business organization that has one owner who assumes [[unlimited liability]]. That means that this owner is personally liable for paying the business' debt. |
Revision as of 10:17, 3 November 2019
Sole proprietorship (or, simply, proprietorship) is a type of business organization that has one owner who assumes unlimited liability. That means that this owner is personally liable for paying the business' debt.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Sole proprietorship. A type of business organization that has one owner. This owner is personally liable for paying the business' debt.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Proprietorship. An unincorporated business owned by one individual.
Related concepts
- Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.
