Business Ownership

Sole Proprietorships

100

A business owned by one person.

What is a sole proprietorship?

200

True or false: Simplest form of business ownership and the easiest to start.

What is true?

300

True or false: The most popular form of business ownership.

What is true?

400

Easy start-up, all profits belong to the owner, be your own boss.

What are advantages of a sole proprietorship?

500

Unlimited liability, lack of money, difficulty hiring employees, limited management skills.

What are disadvantages of sole proprietorships?

Partnerships

100

Voluntary association of 2 or more people who act as co-owners of a business for profit.

What is a partnership?

200

Business partner that is liable for everything the business does and has management responsibility.

What is a general partner?

300

No management responsibility or liability for losses beyond what the individual invested.

What is a limited partner?

400

Easy start-up, personal interest, combined skills and knowledge, profits are owners.

What are the advantages of a partnership?

500

Unlimited liability, disagreements, lack of continuity.

What are the disadvantages of a partnership?

Corporations

100

Unlike a real person, a corporation only exists on _______.

What is paper?

200

Artificial person with rights to start and operate a business, buy or sell property, borrow money, sue or be sued.

What is a corporation?

300

Shares of ownership of a corporation.

What is stock?

400

Difficult and expensive to form, government regulations, double taxation, lack of secrecy.

What are disadvantages of a corporation?

500

Limited liability, easy of raising capital, specialized management, ease of ownership transfer.

What are the advantages of a corporation?