Types of Businesses
By: Madison Smith
- This is a business owned and operated by a single person.
- A disadvantage owning your own business is that you, the owner, are completely responsible for all debts and damages
- A Partnership is where two or more own the business.
- When you start this business, you and your partner will draw up a legal agreement called Articles of Partnership. This is where each of you decide how much of the business you each own.
- Disadvantages :
-The legal structure is complex, meaning when a partner is added or removed a new agreement is to be made.
-The owners have unlimited liability. This means you could own 1/5 of the business but if the other owners cant pay their share then you are responsible for the total cost
- To someone who wants to start a corporation must get a charter. This charter aslo specifies the amount of stock, Then the people who purchase this stock, Stockholders, now become part owners of the corporation.
-Often are expensive and complex to set up
-The business owners have very little say in the management of the business.
-They have to release certain reports on a regular basis. These reports give detailed information about the company. Used to inform.