Business Ownership Review

The form of ownership that gives one person sole control over all business activities is known as

(a)  

The form of ownership that exists when two or more people begin to start a business

(a)  

A separate legal entity begun by forming documents with the state

(a)  

Most of the business ownership in the United States is structured as

• Proprietorships

• Partnerships

• Corporations

• Franchises

One advantages to a proprietorship is

• All assets are unprotected

• Easy to start

• Little room for expansion

• No independence

One disadvantage to a proprietorship

• Easy to start

• Little money required to begin

• All assets can be taken from you

• All profit is your own

One advantage to a partnership

• Responsible for other partner's decisions

• Work tasks are split up

• Cooperation is difficult at times

• No protection for personal property

One disadvantage to a partnership

• Two or more people contribute money

• Both partners share expertise

• Good for people who share similar views

• If a partner dies, partnership must be dissolved

The legal body that governs a corporation and what they do

(a)  

One advantage to a corporation is

• Limited liability

• Double taxation

• Hard to raise capital ($)

• Difficult to expand