Types of Businesses
Prop./Part./Corp.
Different types of businesses
Proprietorships
Structure: " "
Partnership
Structure: Articles of partnership-this document identifies how much money each person contributes and the role each will play
Corporations
Structure: A charter which includes the name, purpose, address, stock, and other features of the business.
Advantages and disadvantages
Disadvantages- complete legal responsibility for all debts and damages
Partnerships: Advantages- multiple owners means more money for growth and different skills
Disadvantages- owners have unlimited liability. the legal structure is very complex and has to be redrawn every time a partner is added or removed
Corporations: Advantages- ease of raising financial capital, can grow to be huge
Disadvantages- expensive and complex to set up, owners don't have much say so, and business is under more government regulations.