Name: Carmen C.

Carcellar
Subject : Financial Planning

QUIZ.
Questions:
1. What are some advantages and disadvantages of
operating as a partnership?
Answer:
In operating a partnership, one of the good thing of this
is complementary skill; I and my partner can bring
different skills and expertise to the business. another
thing, is when it comes to decision making it can bring a
diverse perspective that it will help us to create an ideal
way to success. On the other hand, one of the
disadvantages of operating partnership is when it comes
to profit, it can create conflict if not managed well and
also both you and your partner is crucial if one of partner
leaves or passes away the business can be dissolve. The
choice of the operating as a partnership should consider
these factors and align with the specific goals and
circumstances of the partners involved. Partnership must
have transparency.

2. How does the process of setting up a sole

proprietorship differ from setting up a partnership or
corporation?
Answer:
In setting up a sole proprietorship - first it should
required a formal registration- need to register a
business name if it's different from your own legal name,
depending on local regulations. Afterwards, your
personal assets are at risk so you should have unlimited
personal liability for business debts and obligations to be
followed by the reporting on your personal tax return,
listing profits and losses from business
While in the partnership- it starts to have a written
partnership agreement detailing how the business will be
run , profit, sharing , roles, and responsibilities followed
by registration obtaining necessary licenses or permit
and it should have its own tax identification number (TIN)
then liability and taxes.
In corporation - first you must file articles of
incorporation with the state, appoint directors, and issue
shares of stock, then liability and taxes and regulations -
because in corporation are subject to more regulatory
requirement, such as holding regular shareholder
meeting and maintaining corporate record. Then the
capital - corporations can raise capital by selling shares of
stock , making it an attractive option for larger business.
The choice among these structures depends on factors
like the size of the business, liability concerns, taxation
preferencez and the desire for flexibility in management
and ownership. Its crucial to consult with legal and
financial advisor to make the best choice for your specific
situation.