Introduction to Types of Organizations

This type of business is owned by one person.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise

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

What is a major advantage of a business that is a partnership rather than a sole proprietorship?

• The responsibility for the business is shared
• The business is easy to set up
• The partners are not responsible for business debts
• The business is easy to sell

What is a business owned and operated by two or more people?

• Sole Proprietorship
• Partnership
• Corporation

Which is ONE disadvantage of Sole Proprietorship?

• Less direct control
• Disagreements
• Hard to raise money

What is ONE advantage of a Corporation?

• Difficult to start
• Make all of the decisions
• Easy to raise money!

Disadvantages include limited life and
the potential for conflict between partners

• Sole Propriotorship
• Partnership
• Corporation

Characteristics include owned by two or more people and may be general or limited

• Sole Propriotorship
• Partnership
• Corporation

Advantages include limited liability for owners, unlimited life, and ease of transfer of ownership. 

• Sole Propriotorship
• Partnership
• Corporation