Business Organization Padlet by Darryl Sims

Sole Proprietorship

dsims0018 — 2023-11-13 16:03:30 UTC

Characteristics: Owned by one person, The least common form of business organization

Advantages: The owner keeps all profits and does not have to share, Easy to start, The owner makes all decisions on their own

Disadvantages: Unlimited liability, Limited life (death of owner(s) ends the business), Difficult to attract qualified employees, Limited access to funding

Partnership

dsims0018 — 2023-11-13 16:32:49 UTC

Characteristics: Owned by two or more people, The most common form of business organization

Advantages: More access to start-up money than sole proprietorship, Limited liability, Easy to start

Disadvantages: Unlimited liability, Limited life (death of owner(s) ends the business), Profits have to be shared between co-owners, Potential for conflict

Corporation

dsims0018 — 2023-11-13 16:36:22 UTC

Characteristics: Owned by shareholders, Earns the greatest percentage of business profits in the U.S.

Advantages: Unlimited life (business continues to exist even when ownership changes), Can benefit from specialization based on owners’ areas of expertise, Access to large amounts of financial capital (money) for expanding, Easy to transfer ownership

Disadvantages: Double taxation (taxed on profits and dividends), Greater government oversight/regulation, Owners have little control over the day-to-day operations of the business