Chapter 8: Types of Business Organizations

This type of business is owned by one person.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise

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 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

What is a business owned by stockholders/investors but operated by others?

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Partnership

Which is ONE disadvantage of Sole Proprietorship?

• Less direct control

• Disagreements

• Hard to raise money

• Unlimited Life

What is ONE advantage of a Corporation?

• Difficult to start

• Make all of the decisions

• Easy to raise money!

• Limited Life

Disadvantages include limited life and

the potential for conflict between partners

• Sole Propriotorship

• Partnership

• Corporation

• Franchise

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

• Sole Propriotorship

• Partnership

• Corporation

• Franchise

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

• Sole Propriotorship

• Partnership

• Corporation

• Franchise