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Types of business ownership, and franchising

PART I
List and describe three advantages and three disadvantages of the following types of business ownership:

Sole Proprietorship
List and describe three advantages and three disadvantages of sole proprietorships.

Partnership
List and describe three advantages and three disadvantages of partnerships.

Corporations
List and describe three advantages and three disadvantages of corporations.

PART II
Identify and discuss the following for franchising:

What does franchising mean?
What are the advantages of franchising?
What are the disadvantages of franchising?

Solution Preview

Sole proprietorship - a single owner or single entity. For tax purposes, the income and responsibility of the business is also the owner's. Advantages: no one to tell you what to do. Can change any part of what the business does without cost. No paperwork or costs with the government beyond a business license. Disadvantages: Taxes can be higher. No one to help with financing or problem solving in terms of ownership. If the business fails, the owner is responsible for any residual payables or inventory. Tax rates are based on individual.

Partnership: two or ...

Solution Summary

A discussion on the various types of business ownership and franchising and their advantages and disadvantages.

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