Types of Business
By : Tayha Black
Sole proprietorship is a business is owned and operated by one person. One example of sole proprietorship is Jackie, she owns and works out of her own business. A few advantages are that she has control over what happens to business from the designs to who works there, also she is her own boss and who doesn't want that. But there are downsides, like she has to pay off all the depts herself and she has unlimited liability.
In a partnership there a business or organization is owned by two or more people. An example of a partnership is the doritios and mountain dew companies . Some advantages of partnerships is that you don't have to make all the big decisions yourself and there's shared liability. Disadvantages are that you might have conflict between partners about decisions and that you have unlimited liabilities.
Corporations are independent legal entities owned by shareholders. An example of a corporation is Wendy's, they are owned by a company and they have stores in several states. Advantages are there is limited liability for the owners and outside people came buy stock from you. Disadvantages are that they are very expensive to start up and you get double taxed and there are more legal requirements.