Types of Business Ownership

What is a Business owned and run by a single person

• Sole Proprietorship
• Partnership
• Corporation
• Franchise

What is an advantage of a Sole Proprietorship?

• Limited start up funds
• Unlimited Liability
• Keep all profits
• Work long hours/lot of responsibility

Type of Business owned by two or more people

• Sole Proprietorship
• Franchise
• Corporation
• Partnership

What is an advantage of a Partnership?

• Unlimited Liability
• Conflict between partners
• Share decision making and skills
• Limited life

What is a disadvantage of a Partnership?

• Unlimited Liability (can take all partners assets or belongings)

• Easy to start

• Few Regulations

• Greater access to funds

A business owned by individuals, called stockholders and shareholders

• Sole Proprietorship
• Corporation
• Franchise
• Partnership

What is an advantage of a Corporation?

• Difficult to start

• Government Regulated

• Taxed heavily on Profits

• Limited liability (Stockholders not held liable)

What is a disadvantage of a Corporation?

• Government Regulated/Taxed Heavily
• Limited Liability
• Great access to funds/money
• Run by professionals

Company that is formed by an agreement between the parent company and the business operator to sell a company's products

• Sole Proprietorship
• Corporation
• Partnership
• Franchise

What is an advantage of a Franchise?

• Less control
• Can rely on franchise for help and training
• Franchise Rules
• Limited in Products