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Buisness ownership
different types of Buisness ownership
Term | Definition |
---|---|
partnership | legal agreement between to more people to be jointly responsible for the success of the business |
general partnership | a type of business ownership which a partner shares in the profits and loses |
limited partnership | type of business ownership in which each limited partners liable for any debts only to the amount of his or her investment in the copmpany |
cooporation | legal entity created by either a state or federal stature authorizing individual to operate an enterprise |
LLc | owners or members are protected form personal liability hybrid of partnership and cooporation |
DBA | .doing business as |
advantages partnership | .combines skills of owners .may make more capital available |
disdadvantages of partnership | .business dissolved if one person dies .owners may not always agree |
advantages of cooporation | .each owner has limited liability .owners can enter and exit by selling stock |
disadvantages of cooporation | .formation is complex .increased regulation by government |
Sole proprietorship advanages | .easy to start .owner has control |
sole proprietorship disavantages | .owner responsible for all debts and legal judgements |