Types of Business Ownership

Front

What is a sole proprietorship?

Back

A business owned and operated by a single individual, who receives all profits and is personally liable for all debts.

Front

What is a corporation?

Back

A legal entity that is separate from its owners, owned by shareholders, and can raise capital by selling shares.

Front

What is a partnership?

Back

A business owned by two or more individuals who share profits, losses, and management responsibilities.

Front

What is the main advantage of a sole proprietorship?

Back

The owner receives all profits and has complete control over the business.

Front

What is the main disadvantage of a sole proprietorship?

Back

The owner is personally liable for all debts and obligations of the business.

Front

Who owns a corporation?

Back

Shareholders own a corporation and have limited liability for its debts.

Front

What is limited liability?

Back

A legal structure that protects owners' personal assets from being used to pay business debts.

Front

What is an example of a partnership?

Back

Ben and Jerry's ice cream business, where two individuals collaborate to run the business.

Front

What is a cooperative?

Back

A business owned and operated by a group of individuals for their mutual benefit.

Front

What is the primary purpose of a business?

Back

To provide goods or services to customers while generating profit.