Business Structures

a sole proprietorship is

• a business that is owned and managed by ONE person

• a business that is owned and managed by TWO OR MORE PEOPLE

• a legal entity created under the laws of a state

• a business that sells stocks

a partnership is

•   a business that is owned and managed by ONE person

• a business that is owned and managed by TWO or more people

• a legal entity created under the laws of a state

• a business that sells stocks

a corporation is

• a legal entity created under the laws of a state

• a business that does not sell stocks

• a business that is owned and managed by ONE person

• a business that is owned and managed by TWO or more people

Which of the following are NOT legal entities?

• sole proprietorship

• partnership

• corporation

What is one advantage of having a sole proprietorship?

• you keep all the profits

• you have to pay all the debts

• you are a legal entity

• difficult to attract qualified employees

what is one disadvantage of having a sole proprietorship?

• you keep all the profits

• you have to answer to your boss

• you only get taxed once

• difficult to attract qualified employees

what is one advantage of a partnership?

• you keep all the profits

• you have to split the profits with your partners

• you are responsible for all debts

• easier to attract qualified employees than sole proprietorship

what is one disadvantage of being in a partnership?

• easier to attract qualified employees

• easier to get financial capital

• you share responsibility of debt with more people

• you have to make compromises with partners

what is one advantage of a corporation?

• more government regulations

• it costs money to become a corporation

• you are taxed more than once

• you can make financial capital by selling shares of company

what is one disadvantage of having a corporation?

• corporations have rights of an individual

• corporation can exist forever, even if sold

• you make money by selling stocks of company

• more regulations