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.
Partnership
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.
Corporation
A legal entity owned by individual stockholders.
Example: FoodLion
Advantages: Limited liability for owners, transferable ownership.
Disadvantages: Expensive, difficult to start up.