1. Types of Business Sole Proprietorship, Partnership, Corporation

2. Sole Proprietorship  A: Business owned and operated by one person  B: Advantages  Make decisions quickly  Keep all profits  Least regulated form of business  Requires full financial capital to start and operate business  72% of businesses are sole proprietorship ( these are the small businesses that are the engine that drives the economy)

3. Sole Proprietorship/Disadvantages  Unlimited liability: complete legal responsibility for all debts and damages arising from doing business.  Difficult to raise financial capital-investment money to start, operate, or expand the business.  Might be difficult to attract qualified employees

4. Partnership  Two or more people own and operate a business.  Partners create legal document to share profits, liability, and responsibilities.  Two types of partnerships-  General Partnership- all partners are responsible for management and financial obligations.  Limited Partnership- not all partners have equal liability, management, or investment of capital

5. Advantages and Disadvantages  Advantages:  Specialization of partners, easier to manage as it grows  Easier to raise capital  No corporate income tax  Disadvantages:  Complex legal structure; often disagreements  Unlimited liability among partners