TYPES OF BUSINESS

TYPES OF BUSINESS

a

b

c

d

e

f

g

non-profit

sole proprietorship

partnership

limited partnership

co-op

corporation

LLC

PARTNERSHIP; it can be general or limited.

In​ (a)   both partners invest with 100% of responsibility for any business debts. In ​ (b)   they describe who is responsible for certain debts.

• general partnerships
• limited partnerships

PARTNERSHIP: advantages and disadvantages

• Business can stop if partners choose to end partnership

• Combination of expertise

• Share responsibilities

• Difficulty in transferring ownership

• All members are liable for debts

• Easy to establish

• More opportunities to increase collaboration

• Full liability

• Minimal legal documents.

• Distributed workload

CORPORATION: advantages

• Owners

• aren't

• responsible for

• business debts

CORPORATION: advantages

• Quick

• capital

• through

• stocks

CORPORATION: disadvantages

• They pay income tax

• at the corporate rate

• before profits transfer

• to the shareholders

CORPORATION: disadvantages

• the management team

• may direct

• business operations

• rather than the owners

SOLE PROPRIETORSHIP: advantages

As the sole ​ (a)   of your business, you have full ​ (b)   of business decisions and ​ (c)   habits.

• owner
• control
• spending

SOLE PROPRIETORSHIP: advantages

The ​ (a)   of maintaining a ​ (b)   proprietorship are much less than other business ​ (c)  

• costs
• sole
• structures

SOLE PROPRIETORSHIP: disadvantages

Lack of ​ (a)   . There is a ​ (b)   of becoming too relaxed because you are not required to keep financial ​ (c)  

• structure
• risk
• statements