Types of Business Ownerships

By: Jordyn McMillin

What is a Sole Proprietorship?

Sole Proprietorship

  • A business enterprise exclusively owned, managed, and controlled by a single person with all authority, responsibility, and risk.
  • Advantage: since you're the only owner, you are free to run the business just the way you want to run it
  • Disadvantage: unlimited liability
  • Examples: tutoring; freelance writer; blogger
What is a Partnership?

Partnership

  • A legal form of business operation between two or more individuals who share management, and profits. The two most common are general and limited partnerships.
  • Limited Partnership: a limited partner can only be held liable for the amount of money he or she invested into the company.
  • Advantage: provides moral support, and will allow for more creative brainstorming.
  • Disadvantage: jointly, and individually liable for the other partners actions.
  • Examples: Ben & Jerry's; McDonald's; Parfums Chanel
What is a Corporation?

Corporation

  • A corporation is a business or organization formed by a group of people, and it has rights and liabilities separate from those of the individuals involved.
  • Advantage: generally, a corporation's shareholders are not liable for any debts incurred or judgments handed down against the corporation.
  • Disadvantage: governmental agencies monitor corporations, which may result in added paperwork.
  • Examples: 7-Eleven; ABC; Domino's Pizza

Work Cited

Badami, Knoj. "Disadvantages of Sole Proprietorships." Disadvantages of Sole Proprietorships. Knoj Badami, n.d. Web. 17 Sept. 2014.

Badami, Knoj. "How to Start a Sole Proprietorship?" Starting a Proprietorship. Knoj Badami, n.d. Web. 17 Sept. 2014.

Badami, Knoj. "Understanding Sole Proprietorships." And How They Work, Their Advantages & Disadvantages. Knoj Badami, n.d. Web. 17 Sept. 2014.

Johnson, Rose. "10 Examples of Sole Proprietors." Small Business. Demand Media, n.d. Web. 17 Sept. 2014.

Leatty, Gleanda. "Categories You Should Follow." Answers. Answers Corporation, n.d. Web. 17 Sept. 2014.

"Partnership Definition | Small Business Encyclopedia." Entrepreneur. N.p., n.d. Web. 17 Sept. 2014.

Schick, Nance L. "Know Some Basic Facts about Sole Proprietorship." The Law Studio of Nance L Schick. The Law Studio of Nance L Schick, 5 Apr. 2012. Web. 17 Sept. 2014.

"Business Formation." What Are Some of the Advantages or Disadvantages of Forming a Corporation? N.p., n.d. Web. 19 Sept. 2014.

"Corporation: Definition, Types, Formation, Maintenance." Inc.com. N.p., n.d. Web. 19 Sept. 2014.

"Famous Business Partnerships." Businessweek.com. N.p., n.d. Web. 19 Sept. 2014.

"List of Corporations." - SourceWatch. N.p., n.d. Web. 19 Sept. 2014.

"What Is a Corporation?" YouTube. YouTube, n.d. Web. 19 Sept. 2014.

"What Is a Partnership?" YouTube. YouTube, n.d. Web. 19 Sept. 2014.

"What Is a Sole Proprietorship?" YouTube. YouTube, n.d. Web. 19 Sept. 2014.