TYPES OF BUSINESS

TYPES OF BUSINESS

a

b

c

d

e

f

g

sole proprietorship

limited partnership

partnership

corporation

co-op

LLC

non-profit

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

• All members are liable for debts

• Full liability

• Minimal legal documents.

• Distributed workload

• More opportunities to increase collaboration

• Combination of expertise

• Share responsibilities

• Difficulty in transferring ownership

• Business can stop if partners choose to end partnership

• Easy to establish

CORPORATION: advantages

• Owners

• responsible for

• aren't

• business debts

CORPORATION: advantages

• Quick

• capital

• stocks

• through

CORPORATION: disadvantages

• to the shareholders

• at the corporate rate

• before profits transfer

• They pay income tax

CORPORATION: disadvantages

• rather than the owners

• may direct

• business operations

• the management team

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