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Dialogue 4.
Date: 2015-10-07; view: 496.
Dialogue 3.
Dialogue 2.
| A:
| It seems to me that sole proprietorship has some disadvantages.
| | B:
| Yes, you are right. The first one is risk of losses and then goes unlimited liability and having few fringe benefits. The stunning thing is that the major advantage of a sole proprietorship, which is being its one and only owner, can simply turn into the major disadvantage.
| | A:
| What do you mean?
| | B:
| I mean that there is nobody to consult with or blame if anything goes wrong.
| | A:
| Wonderful news! I have found a partner to do my business with!
| | B:
| Nice! You can start a partnership. This means that you will get more financial resources and management will be easier. Speaking about financing, you have to differentiate between limited partner and general partner.
| | A:
| It seems to me I know the difference. Limited partner invests money in business, but doesn't have any management responsibility or liability for losses while general partner has unlimited liability and is active in managing the firm.
| | A:
| You know, corporation is the third type of business organisation. It is a state-chartered legal organisation with authority to act, exist and have liability separate from its owners. Besides, it has some tax advantages…
| | B:
| I understand… But corporation is a very expensive business to organise. Besides, running a corporation requires a lot of paper work. That's definitely not for me.
| | A:
| Well, anyway it's up to you to decide.
| | B:
| Thanks a lot for your consultation, Mark. I'll take into consideration everything you said.
| | A:
| You are welcome. And please, do call me if you have any questions in future, I'll do my best to help you.
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