3 Types of Business

By: Sawyer Mahaffey

Sole Proprietorship

Business owned and managed by a single individual. 75% of all business is sole proprietorship.

Example: Honey Bee business

Advantages: Easy to start up, and full control of business.

Disadvantages: Unlimited personal liability, limited access to resources.


A business organization owned by two or more persons who agree on the division of responsibilities and profits.

Example: Walmart

Advantages: Easy start up, shared decision making.

Disadvantages: Unlimited liability, potential for conflict.


A legal entity owned by individual stockholders.

Example: FoodLion

Advantages: Limited liability for owners, transferable ownership.

Disadvantages: Expensive, difficult to start up.