Types Of Business

Samantha Ely, Amanda Gaskins

Sole Proprietorship

A business owned and managed by a single individual. About 6% of the US sales

Example of a business that is Sole Proprietorship in North Carolina is Paterson's Farm.

Two advantages of being a Sole Proprietorship business would be Easy start- up, and sole receiver of profit.

Two disadvantages would be unlimited person liability, and limited access to resources

Partnerships

A business owned bye two or more people who has agreed on specific division of responsibilities and profits

An example of a Partnership business in North Carolina would be Chain Grove Family House Restaurant.

Two advantages of a partnership would be Sharing decisions making, and Larger pool of assets- it is helpful when you need to borrow money

Two disadvantages of being in a Partnership would be each general partner is bound to debt incurred and responsible for paying this debt, and General partners do not have absolute control over their business

Corporations

A legal entity owned by individual stockholders, Stockholders are part owners of the corporation.

And example of a Corporation in North Carolina is Foodlion.

Two advantages is limited liability for owners, and Transferable ownership- owners can sell stock and get money in return

Two disadvantages is expensive and difficult to start up and, Double taxes

Big image