Types of Business Organizations

This type of business is owned by one person.

• Partnership

• Sole Proprietorship

• Corporation

• Franchise

The owner is their own boss and gets to keep all the profits.

• Partnership

• Sole Proprietorship

• Corporation

• Franchise

1)owner pays for everything 2)Difficult to get money to start 3)owner might lack skills 4)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 by stockholders/shareholders but operated by others?

• Sole Proprietorship

• Partnership

• Corporation

• All are correct

What is a business owned and operated by two or more people, w/ no shareholders?

• Sole Proprietorship

• Partnership

• Corporation

• All are correct

What is ONE advantage of a sole proprietorship?

• You make ALL the decisions

• Easy to raise money

• You have to share profits

• Shareholders own the business

Which is ONE disadvantage of Sole Proprietorship?

• Less direct control

• Disagreements

• Hard to raise money

• Shareholders have too much influence

What is ONE advantage of a Corporation?

• Difficult to start

• Make all of the decisions

• Easy to raise money!

• There are no shareholders to influence decisions

One disadvantage of ____ is the potential for conflict among partners.

• Sole Propriotorship

• Partnership

• Corporation

• All are correct