Types of Businesses...

Samantha Marvin

Proprietorships

This is a business ran by a single individual.


Pros: Receives all profits, make decisions quickly


Cons: Unlimited liability, complete legal responsibility for all debts and damages

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Partnerships

There are different kinds of partnerships. General partnerships which is when all partners are responsible for management and financial obligations. Limited at least one partner is not included in daily activities.


Pros: Raise more money than proprietorship, they can always add more partners, they pay no corporate income tax.


Cons: Legal structure is complex, when a partner is added must re-do agreement, have unlimited liability.

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Corporations

The person must get a charter and specify the amount of stock or ownership shares of the corporation.


Pros: Ease of raising financial capital, if they need more money the corporation can sale new shares of stock, allows corporations to grow huge


Cons: Expensive and complex to set up, business owners have very little say in management, millions of people own shares of the business,more regulations by the government then the other forms of businesses.

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