Business ownership is when one or more people own an organization that provides products or services for consumers. The owner's rights and responsibilities are structured in the form of business entities. The three primary business types are sole proprietorship, partnerships, and corporations.
Business Entities (Advantages & Disadvantages)
There are many pros and cons to each type of business ownership. In this study, we will observe two advantages and two disadvantages for each entity.
1. Sole Proprietorship - This type of business is owned by one individual and there is no legal separation between the business owner and the company. One advantage is that when the business is doing well, the owner receives all of the profits. A second benefit is that these owners make their own decisions. They do not have the burden of arguing with a partner or board of directors to approve business decisions. The disadvantage is that all liabilities are the responsibility of the owner since there is no legal distinction between the owner and the ...
This solution discusses advantages and disadvantages of various types of business ownership.