1. Characteristics of Business Organizations

2. Sole Proprietorship O Business owned and run by one person O Largest number of businesses in the US

3. Partnership O Business owned by 2 or more people O Fewest number in the US

4. Corporation O A form of a business organization recognized by the law as having all the rights of individuals O Generates the most business

5. Profits and losses: shared or not?

6. Sole Proprietorship O Not shared

7. Partnership O Shared between partners according to partnership agreement

8. Corporation O Shared with stockholders O Dividends

9. Liability: Limited or Unlimited. Discuss

10. Sole Proprietorship O Unlimited

11. Partnership O Unlimited or limited depending on how the Articles of Partnership are written

12. Corporation O Limited

13. Management: Is it easy or difficult?

14. Sole Proprietorship O Easy O You can make decisions quickly

15. Partnership O Can be difficult as each owner may have their own ideas

16. Corporation O Can hire management teams to run most efficiently

17. Taxes: What type are paid?

18. Sole Proprietorship O Individual Income Tax

19. Partnership O Individual Income Tax

20. Corporation O Double Taxation – O Individual Income Tax for shareholders O Corporate Tax for the business

21. Personal Satisfaction: What kind of satisfaction do owners get?

22. Sole Proprietorship O Lots O They reap all the benefits

23. Partnership O Lots O They can reap many benefits

24. Corporation O Stock Dividends – yes O No satisfaction from running your own business or being your own boss

25. Start-up: Is it easy or difficult? How do you do it?

26. Sole Proprietorship O Easy O Apply for a business license

27. Partnership O Easy O Need Articles of Parnertership drawn up listing who is responsible for what

28. Corporation O Hard O Must file for permission from the gov’t O If approved a charter will be granted O Then you can sell stock

29. Financing Growth: Is it easy to raise money for growth?

30. Sole Proprietorship O Very difficult O Banks less likely to lend to an individual

31. Partnership O Difficult depending on the size of the partnership

32. Corporation O Very easy O Sell more stock

33. Efficiency: Can the business operate efficiently?

34. Sole Proprietorship O Depends on the size of the business O Can be difficult if you are the one in charge of all aspects of the business

35. Partnership O Can be difficult depending on the size O More efficient than a sole proprietorship

36. Corporation O Very easy O Can hire a professional team to manage it

37. Attracting New Employees: Easy or Difficult?

38. Sole Proprietorship O Difficult O You cannot offer the same benefits and pay

39. Partnership O Difficult depending on the size

40. Corporation O Easy O Can offer many incentives

41. Life of the Business: How long does it continue?

42. Sole Proprietorship O Limited O Owner dies – business dies

43. Partnership O Limited and Unlimited O Depends on how the Articles of Partnership are written

44. Corporation O Unlimited O Stock can be sold to others when someone does not want it any longer