1. Types of Business Ownership
Advantages and Disadvantages

2. Sole Proprietorship
A business owned by only one person.

3. Partnership Two or more persons sharing ownership
and operation of a business under a
contractual agreement.

4. Corporation An organization owned by many people but
treated by the law as though it were a legal
entity (“artificial being”, “thing”)

5. Franchise A legal agreement to begin and operate a new
business in the name of a recognized company
in exchange for payment, and for the
agreement to operate the business as required.

6. Sole Proprietorship Advantages
Ease of Organizing
Control over Profits
Control over Operations
Pride of Ownership
Lower Taxes
Ease to dissolve

7. Sole Proprietorship Disadvantages
Unlimited Liability
Difficulty in Raising Capital
Responsible for all Losses
Long Hours
Working with Insufficient Capital
Management Knowledge

8. Partnership Advantages
More Capital
Combined Managerial Skills
Established Legal Status
Tax Advantages
Personal Satisfaction

9. Partnership Disadvantages
Unlimited Liability
Shared Profits
Possible Conflicts
Possible Instability
Difficulty withdrawing Investment

10. Corporation Advantages
Limited Liability
Greater Capital
Unlimited Life
Specialized and Professional Management

11. Corporation Disadvantages
Increased Taxation
Difficulty in Starting
Management Problems
Increased Government Control

12. Franchise Advantages Business is already created
Parent Company Expertise and Help
National Advertising

13. Franchise Disadvantages
Owner Pays the Parent Company a % of Gross Sales
No Independence
Large Investment