A business is allowed to incorporate in any state that it chooses. Once a home state has been chosen, the incorporator(s) submits articles of incorporation to the secretary of state. When the articles of incorporation are approved, they become a contract between a corporation and the state in which the state recognizes the formation of the artificial person that is the corporation. Usually, the articles of incorporation include the following information: Show 1. The firm's name and
address As the last step in forming a corporation, the incorporators and original stockholders meet to adopt corporate by-laws and elect their first board of directors. Oldest, simplest form of business organization No legislation pertaining to sole proprietorship as such but may need to obtain business licence and register trade name An unincorporated business organization that has only one owner Easy to set up, but business obligations are personal obligations No legal distinction between the business and its owner Owner has unlimited personal liability
for all debts and obligations of the business. In which legal form of business does do the owner or owners have unlimited personal liability for the debts of the business?Liability: The Owner of the sole proprietorship has unlimited personal liability for any liabilities the business incurs. You can mitigate this risk with insurance and sound contracts. Formation: The sole proprietorship is the simplest way of doing business.
What type of business has one and only one owner and has unlimited liability?Sole Proprietorship
It is the simplest form of business organization. Proprietorships have no existence apart from the owners. The liabilities associated with the business are the personal liabilities of the owner, and the business terminates upon the proprietor's death.
Do owners of a company have unlimited liability?Unlimited liability means that the business owners are personally liable for any loss the business makes. Sole traders and partnerships often have unlimited liability.
What is unlimited liability in business quizlet?unlimited liability. means that a business owner is responsible for all the business's losses and debts. easy to open or close, few regulations, freedom and control, owner keeps profits.
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