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Buisness ownership

different types of Buisness ownership

TermDefinition
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
Created by: 100616
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