Compare forms of business ownership.
Three basic forms of business ownership
A business owned and operated by one person. Approximately 76 percent of all businesses in the U.S. Are sole proprietorships. Advantages of sole proprietorships
Easy and inexpensive to create.
Owner makes all business decisions.
Owner receives all profits.
Least regulated form of business ownership. Business itself pays no taxes.
Disadvantages of sole proprietorships
Owner has unlimited liability for all debts and actions of the business. Unlimited liability: The debts of the business may be paid from the personal assets of the owner. Difficult to raise capital.
Sole proprietorship is limited by his/her skills and abilities. The death of the owner automatically dissolves the business.
A form of business ownership in which two or more people share the assets, liabilities, and profits.
Types of Partnerships
General partnership: A partnership in which all partners...
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