PBMF Lesson 5-2: Forms of Business Ownership

Owned and controlled by two or more people

• Proprietorship
• Partnership
• Corporation
• All of these

A written agreement defines ownership

• Proprietorship  
• Partnership            
• Corporation        
• Partnership and/or Corporation

Owned and run by one person

• Proprietorship  
• Partnership    
• Corporation  
• All of these

Shareholders have a voice in business decisions

• Proprietorship  
• Partnership    
• Corporation  
• All of these

No protection for personal assets

• Proprietorship  
• Partnership    
• Corporation  
• Proprietorship and/or Partnership     

Managed by a board of directors

• Proprietorship  
• Partnership    
• Corporation 
• Partnership and/or Corporation  

Usually must be dissolved if an owner leaves

• Proprietorship  
• Partnership    
• Corporation  
• All of these

The easiest form of business to start and run

• Proprietorship  
• Partnership    
• Corporation  
• All of these are very difficult

Protects the liability of owners

• Proprietorship  
• Partnership    
• Corporation  
• All of these

Business income is taxed as personal income

• Proprietorship  
• Partnership
• Corporation
• Proprietorship and/or Partnership