Chapter 6 Common Stocks o The corporate form of business organization Sole proprietorship A sole proprietorship is a business owned by a single individual or one person. This is the simplest type of business to start and is the least regulated form of organization o The owner of a sole proprietorship keeps all the profits And the owner has unlimited liability for business debts e There is no distinction between personal and business income, so all business income is taxed as personal Income o The life of this firm is limited to the owner's life spanChapter 6 Common Stocks The corporate form of business organization ⚫ Sole proprietorship ⚫ A sole proprietorship is a business owned by a single individual or one person. This is the simplest type of business to start and is the least regulated form of organization. ⚫ The owner of a sole proprietorship keeps all the profits. And the owner has unlimited liability for business debts. ⚫ There is no distinction between personal and business income, so all business income is taxed as personal income. ⚫ The life of this firm is limited to the owner’s life span