Types of business

What is a business owned and operated by one person?

• Sole Proprietorship
• Partnership
• Corporation

What is a business owned by stockholders/investors but operated by others?

• Sole Proprietorship
• Partnership
• Corporation

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

• Sole Proprietorship
• Partnership
• Corporation

What is ONE advantage of a sole proprietorship?

• You make ALL the decisions
• Easy to raise money
• You have to share profits

Which is ONE disadvantage of Sole Proprietorship?

• Less direct control
• Disagreements
• Hard to raise money

What is ONE advantage of a Partnership?

• Someone else can help with decisions, etc.
• Double taxes
• Disagreements

What is ONE advantage of a Corporation?

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

What is ONE disadvantage of a Corporation?

• Disagreements
• Less direct control
• The risk is all on one person

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

A father who wants to take his son into the business with him should form this type of business.

• Sole Proprietorship

• Partnership

• Corporation