Types of Businesses

Prop./Part./Corp.

Different types of businesses

There are three main kinds of business organizations in then economy today the sale proprietorship, the partnership, and the corporation. Each offers owners important advantages and disadvantages.

Advantages and disadvantages

Proprietorships: Advantages- receive all profits and can make quick decisions

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.