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WorksheetsTYPES OF BUSINESS
Total questions: 12
Worksheet time: 19mins
TYPES OF BUSINESS
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.
PARTNERSHIP: advantages and disadvantages
Easy to establish
Minimal legal documents.
Distributed workload
Share responsibilities
Difficulty in transferring ownership
Business can stop if partners choose to end partnership
Full liability
All members are liable for debts
Combination of expertise
More opportunities to increase collaboration
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.
SOLE PROPRIETORSHIP: advantages
The (a) of maintaining a (b) proprietorship are much less than other business (c)
SOLE PROPRIETORSHIP: disadvantages
Lack of (a) . There is a (b) of becoming too relaxed because you are not required to keep financial (c)
LIMITED LIABILITY COMPANY
The most common form of business (a) for small businesses is a limited liability company, or (b) , which is defined as a separate (c) and may have an unlimited number of (d) . They are typically (e) as a sole proprietorship and require insurance in case of a lawsuit.
COOPERATIVE
A cooperative, or a (a) , is a private business or organization that a group of (b) owns and runs to meet a (c) . These (d) work together to operate the business, and they share the (e) and other benefits.
