Types of Business Ownership

Business owned and operated by one person.

Most common type of ownership in the U.S.

• partnership

• sole proprietorship

• Corporation

• Franchise

What are some advantages of a sole proprietorship.

• Limited Liability.

  Easy to set up.

  Inexpensive to set up.

• Easy to set up.

  Inexpensive to set up.

  Owner keeps all the profits.

• Expensive to set up.

  Double taxation.

  More people to share responsibilities.

What are some disadvantages of a sole proprietorship?

• Unlimited liability.

  More difficult to obtain financing.

  Limited skills.

• Limited liability.

  More difficult to obtain financing.

  Limited skills.

• Expensive to set up.

  Double taxation.

  Difficult to close.

What is an association of two or more persons who carry on as co-owners of a business for profit?

• Sole proprietorship

• Partnership

• Corporation

What are some advantages of a partnership?

• Few government regulations.

  Diversity of skills.

  Fairly easy to organize.

• Limited liability.

  Diversity of skills.

  Fairly easy to organize.

• May sell stocks to help finance business.

  Diversity of skills.

  Fairly easy to organize.

What is it called when  your personal assets (home, bank accounts and other property) can be used to pay business debts?

• limited liability

• unlimited liability

• limited liability company

Type of partnership where the partner is not responsible for the management of the company and liability is limited to investment

• general partnership

• limited partnership

• regular partnership

Type of partnership where the partner has responsibility for management and unlimited liability

• general partnership

• limited partnership

• regular partnership

When your liability is limited to the amount that you have invested in the business only.

• unlimited liability

• limited liability

• general liability

A legal entity, created by the state, whose assets and liabilities are separate from its owners.

• Unlimited Liability Company

• Corporation

• Partnership

• Franchis