Marketing Management Study Guide EOPA (MM Pt. 1)

The most common form of business ownership in the United States is________.

• Partnership

• Sole Proprietorship

• Corporation

• Limited Liability Corporation (LLC)

Identify an advantage of a sole proprietorship.

• There are two or more owners, the partners share in the costs, decisions, and responsibility.

• Money is easily raised by shareholders although most decisions are made by the board of directors.

• Run like a partnership and a corporation limited the responsibility of the partners

• One owner who makes all of the business decisions

Identify an advantage of a partnership.

• There are two or more owners, the partners share in the costs, decisions, and responsibility.

• Money is easily raised by shareholders although most decisions are made by the board of directors.

• Run like a partnership and a corporation limited the responsibility of the partners

• One owner who makes all of the business decisions

Identify an advantage of a corporation.

• There are two or more owners, the partners share in the costs, decisions, and responsibility.

• Money is easily raised by shareholders although most decisions are made by the board of directors.

• Run like a partnership and a corporation limited the responsibility of the partners

• One owner who makes all of the business decisions

Identify an advantage of a limited liability corporation.

• There are two or more owners, the partners share in the costs, decisions, and responsibility.

• Money is easily raised by shareholders although most decisions are made by the board of directors.

• Run like a partnership and a corporation limited the responsibility of the partners

• One owner who makes all of the business decisions

Identify an disadvantage of a limited liability corporation.

• May be difficult to raise money compared to a corporation.

• Double taxation

• The partners may disagree thus causing problems in the business.

• The owner of the co.mpany has unlimited liability

Identify an disadvantage of a corporation.

• May be difficult to raise money compared to a corporation.

• Double taxation

• The partners may disagree thus causing problems in the business.

• The owner of the company has unlimited liability

Identify an disadvantage of a sole proprietorship.

• May be difficult to raise money compared to a corporation.

• Double taxation

• The partners may disagree thus causing problems in the business.

• The owner of the company has unlimited liability

Identify an disadvantage of a partnership.

• May be difficult to raise money compared to a corporation.

• Double taxation

• The partners may disagree thus causing problems in the business.

• The owner of the company has unlimited liability

Select the three main factors to consider when selecting a form of business ownership?

• How much liability protection do I need? How will taxes and the form of business ownership affect me

• Do I need start up capital?

• How will taxes and the form of business ownership affect me?

• How much time will operating a business require?