Types of Partnerships

Association of two or more people to co-own a business for profit.

• corporation
• partnership
• sole proprietorship

A business organization where a legal entity is created by the authority of federal or state law; Exists separately from people who run it or own it

• partnership
• sole proprietorship
• corporation

Company owned by one person

• partnership
• sole proprietorship
• corporation

Jackie needs to raise a large amount of capital to open additional restaurants. She wants to limit her personal liability. She should consider establishing her business as a

• general partnership
• corporation.
• sole proprietorship.
• limited proprietorship

Joe is starting a small home-based consulting business. He possesses computer knowledge but lacks marketing skills. The form of business ownership that Joe might consider establishing is a(n)

• corporation
• sole proprietorship
• monopoly
• general partnership.

A business owner who prefers to maintain complete control of all business activities might consider structuring the venture as a(n)

• sole proprietorship
• general partnership.
• franchise
•  corporation.

Which of the following is a disadvantage of corporations:

• High taxes
• Unlimited life
• Unlimited liability
• financial power

Which of the following is an advantage of the corporation as a form of business ownership:

• Less complex requirements
• Separate owners and managers
• Limited liability
• High Taxes

Which of the following is a disadvantage of sole proprietorships:

• Limited capital
• Control 
• Privacy
• Tax liability

It is important for business owners to weigh the advantages and disadvantages of each ownership structure because

• there is an established procedure for determining the best form of ownership
• individual goals and needs differ, which makes each business situation unique.
• it is important to determine how to sell it down the road.
• most business owners already understand how each form of ownership works