Intro 2.2 Types of Business/Mgmt Functions

Disadvantages of this business type include: needs a partnership agreement, partners might not get along, owners share profits, unlimited liability.

• Sole Proprietorship
• Partnership
• Corporation
• Franchise

Advantages of this type of business include: selling stock to raise money, limited liability.

• Sole Proprietorship
• Partnership
• Corporation
• Franchise

Disadvantages of this type of business include: company is taxed on profits, regulated by the government, and hard to start.

• Sole Proprietorship
• Partnership
• Corporation
• Franchise

Nike, Google and Apple are examples of.....

• Sole Proprietorships
• Partnerships
• Corporations
• Franchises

Law firms and doctor's offices are examples of.....

• Sole Proprietorships
• Partnerships
• Corporations
• Franchises

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise

Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.

• Sole Proprietorship
• Partnership
• Corporation
• Franchise

Advantages of this business include: easier to get money from the bank to start, share skills and share risks.

• Sole Proprietorship
• Partnership
• Corporation
• Franchise

How is a corporation different from a sole proprietorship?

• Corporations are owned by only one person
• Corporations can sell stock to raise money for the business. 
• Sole proprietorships have limited liability for the owners.
• Sole proprietorships require a legal charter to start the business.

When comparing the four main types of business organization, which type protects owners the MOST from personal financial liability due to being sued by a customer?

• Corporation
• Franchise
• Partnership
• Sole proprietorship