Why Are So Many Businesses Structured as Sole Proprietorships When

question 50

Essay

Why are so many businesses structured as sole proprietorships when the corporate form of business offers more advantages?

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Definitions:

IRA

Individual Retirement Account, a tax-advantaged investing tool that individuals use to earmark funds for retirement savings.

After taxes

Refers to the net income after all tax expenses have been deducted.

Compounded Monthly

A method of calculating interest whereby the accumulated interest is added back to the principal sum, and future interest is calculated on the new total each month.

Student Loans

Borrowed money that is used to pay for higher education expenses, which must be repaid with interest.