As we learned in this chapter, it is beneficial to a new small business owner who initiates a sole proprietorship to plan before they initiate the goals for the new small business start-up. Frequently, individuals hire professional attorneys to ensure they receive the professional advice that is required when they plan and implement the specific goals related to their new small businesses.

Individual ownership is typical in the formation of a sole proprietorship. As a result, there is no partner to carry on the business in the event that the owner dies. Suppose the owner of the firm dies and there is not anyone associated with the business to manage the contractual obligations of the firm. What will happen to the business?

Discussion Questions:

1. Summarize the advantages and disadvantages of a sole proprietorship.

2. Discuss the adverse affects to a business if the new business owner dies and has failed to implement succession planning into a contract.

3. Explain what a small business owner can do to assure that the business has the appropriate oversight in the event of the owner’s death.

4. Evaluate the possible recourse of a customer that does not have their contract fulfilled because the business owner passed away and there was nothing noted in the contract to protect the business. Who is liable?