Types of Business Ownerships
By: Jordyn McMillin
- 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
- 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
- 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
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