Business Ownership Types

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

• Partnership

• Sole Proprietorship

• Corporation

• Franchise

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

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

Characteristics include owned by two or more people and may be general or limited

• Sole Propriotorship

• Partnership

• Corporation

Advantages include limited liability for owners, unlimited life, and ease of transfer of ownership. 

• Sole Propriotorship

• Partnership

• Corporation

Sara’s Hair Palace is a small, locally owned beauty salon in Sterling. This represents what type of business?

• corporation

• partnership

• sole proprietorship

What is a major advantage of a business that is a partnership rather than a sole proprietorship?

• The responsibility for the business is shared

• The business is easy to set up

• The partners are not responsible for business debts

• The business is easy to sell