1. Types of Business Organizations
By: Ben Quick

2. Sole Proprietorship
Proprietor – Owner of the business
One Owner

3. Advantages Keep the profits! Quick Decisions Easy to obtain credit
Personal pride

4. Disadvantages Complete legal responsibility
Losses are not shared (unlimited liability)
Must make all decisions
Demanding of time and consuming
Might be forced to rely on personal funds
Business usually does not survive the owner

5. Partnership
Two or more individual owners

6. Advantages Losses are shared Can divide the workload
Can be more successful than a sole proprietorship

7. Disadvantages Have to share profits Unlimited Liability
Slower decision making
Not as easy to raise money
If a partner dies, then the business ends or must be reorganized

8. Corporation
An organization owned by many people but seen by the government as if it were a person

9. Articles of Incorporation
Application with the state in which you will run your business.
If granted by the state, a Corporate Charter (license to operate in the state) is issued.

10. Stock A piece of ownership in the company
Sold by the company to raise money
Stockholders make major decisions within the company

11. Advantages LIMITED LIABILTY!
Stockholders do not need to devote time to running the company
The people running the company are usually business professionals
Easy to raise money
Unlimited life

12. Disadvantages Decision making can be slow Taxes on corporate profits
Individual stockholders have little to no say in how the company is run

13. Questions