Forms Of Small Business Ownership
Forms of Small
Business Ownership
Chapter 8
Three business ownership choices:
1.Sole Proprietorship
2.Partnership
3.Corporation
Sole
Proprietors
hip
A business owned and operated by a single person. What are the
Advantages of
Sole
Proprietorship ?
Advantages of Sole
Proprietorship
Ease and Cost of Formation
Distribution and Use of
Profits
Control of the Business
Government Regulation
Taxation
Closing the Business
What are the
Disadvantages of
Sole
Proprietorship?
Disadvantages of Sole
Proprietorship
Owner’s Lack of Ability and
Experience
Difficulty in Attracting Good
Employees
Difficulty in Raising More
Capital
Limited Life of the Firm
Unlimited Liability of the
Partners hip Partnership
A legal association of two or more persons as co-owners of an unincorporated business.
It is formed with the purpose of eliminating some of the disadvantages sole proprietorships while retaining some of their advantages.
of
What are the
Advantages of
Partnership?
Advantages of
Partnership
Ease of Formation
Pooling of knowledge and skills More sources of capital
Ability to attract and retain employees
Tax advantages
What are the
Disadvantages of
Partnership?
Disadvantages of
Partnership
Unlimited Liability
Limited life
Potential conflict between partners
Difficulty in dissolving the business What are the types of
Partnership?
1.General
Partnership
An association of two or more persons, each with unlimited liability, and who are actively involved in the business.
2.Limited
Partnership
An arrangement in which the liability of one or more partners is limited to the amount of assets they invested in the business.
Partnership
Agreements
A document designed to prevent or at least minimize disagreements between partners.
1)The purpose of the business
2)The terms of the partnership
3)The goals of the partners and the partnership
4)The financial contribution made by each partner at the beginning and during
Business Ownership
Chapter 8
Three business ownership choices:
1.Sole Proprietorship
2.Partnership
3.Corporation
Sole
Proprietors
hip
A business owned and operated by a single person. What are the
Advantages of
Sole
Proprietorship ?
Advantages of Sole
Proprietorship
Ease and Cost of Formation
Distribution and Use of
Profits
Control of the Business
Government Regulation
Taxation
Closing the Business
What are the
Disadvantages of
Sole
Proprietorship?
Disadvantages of Sole
Proprietorship
Owner’s Lack of Ability and
Experience
Difficulty in Attracting Good
Employees
Difficulty in Raising More
Capital
Limited Life of the Firm
Unlimited Liability of the
Partners hip Partnership
A legal association of two or more persons as co-owners of an unincorporated business.
It is formed with the purpose of eliminating some of the disadvantages sole proprietorships while retaining some of their advantages.
of
What are the
Advantages of
Partnership?
Advantages of
Partnership
Ease of Formation
Pooling of knowledge and skills More sources of capital
Ability to attract and retain employees
Tax advantages
What are the
Disadvantages of
Partnership?
Disadvantages of
Partnership
Unlimited Liability
Limited life
Potential conflict between partners
Difficulty in dissolving the business What are the types of
Partnership?
1.General
Partnership
An association of two or more persons, each with unlimited liability, and who are actively involved in the business.
2.Limited
Partnership
An arrangement in which the liability of one or more partners is limited to the amount of assets they invested in the business.
Partnership
Agreements
A document designed to prevent or at least minimize disagreements between partners.
1)The purpose of the business
2)The terms of the partnership
3)The goals of the partners and the partnership
4)The financial contribution made by each partner at the beginning and during