Term
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Definition
| Owned and controlled by one person |
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Term
| Unique Charicteristics of Sole Proprietorship |
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Definition
1. Most common form in the U.S.
2. Highest risk of Failure |
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Term
| Advantages of Sole Proprietorships |
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Definition
1. Repuires small amounts of capitol
2. Quick decision making and total control.
3.Easy to form and few legal considerations
4. Recieves all profits
5. Much personal satisfaction |
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Term
| Disadvantages of Sole Proprietorships |
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Definition
1. Lack of longevity
2. Unlimited liability
3. Limited growth potential
4. Sole Responsibility |
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Term
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Definition
| Owned and controlled by two or more people |
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Term
| Unique charicteristics of Partnerships |
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Definition
1. Two types:
a. General (day to day)
b. Limited (silent partner)
2. Fewest in number of any form of business |
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Term
| Advantages of Partnerships |
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Definition
1. Requires small amounts of capitol
2. Shared decision making
3. Easy to form and few legal forms
4. Much personal satisfaction |
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Term
| Disadvantages of Partnerships |
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Definition
1. Risky due to disagreements, conflicts and questions of trust.
2. Shared profit
3. Lack of longevity/limited life
4. Unlimited liability for general one; limited for limited partnership |
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Term
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Definition
| Owned by sockholders and treated by law as an individual |
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Term
| Unique Charicteristics of Corporations |
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Definition
1. Two Types:
a. Publicly Owned
b. Closed
2. Earns greatest percent of total sales in the U.S. |
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Term
| Advantages of Corporations |
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Definition
1. Easy to raise capitol
2. Limited liability
3. Longevity/unlimited life
4. Profit to shareholders through dividends or capitol gains
5. Specialization through professional managers |
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Term
| Disadvantages of Corporations |
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Definition
1. Profits taxed twice, corporate tax then personal tax
2. Lack of personal satisfaction
3. Slow decision making
4. Complex to set up and many legal considerations |
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