BUSI603 DB Response3a

BUSI603 DB Response3a - DB Response 3a While there are...

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DB Response 3a While there are several factors to be considered for the possibilities of sole proprietorship, partnership, and corporation, the taxation of capital and labor is a point that has not been given enough attention in our discussion. The points that have been made are certainly agreeable as a whole, but there is more than likely some pieces of the picture that have yet to be fully understood. You mentioned that with the sole proprietorship option, Mike would be held personally responsible for the consequences of his business. This is true, but what is the extent to which he would be held personally responsible? If Mike’s business succeeds and never encounters a lawsuit or financially harmful situation, will he have then lost potential income if he chooses to be a part of a corporation or a partnership? Sole proprietorship would grant Mike all the flexibility he could desire and has the potential to deliver a big payoff if the business is successful (Longenecker, Moore, Petty, & Palich,
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BUSI603 DB Response3a - DB Response 3a While there are...

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