Term
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Definition
| owned/controlled by one person |
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Term
| unique characteristics (sole proprietorship) |
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Definition
most common highest risk of failure |
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Term
| advantages (sole proprietorship) |
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Definition
requires small amounts of capital quick decision making and total control easy; few legal considerations recieve all profits much satifaction in business's |
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Term
| disadvantages (sole proprietorship) |
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Definition
lack of longevity unlimited liability limited growth potent sole responsibility |
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Term
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Definition
| owned/controlled by two people |
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Term
| unique characteristics (partnership) |
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Definition
general and limited partnerships fewest of any businesses |
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Term
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Definition
requires small amounts of capital shared ecision making easy to form/ few legalities shared losses much staisfaction whem business succedes |
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Term
disadvantages (partnership) |
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Definition
risky to start with partner:conflicts, disagreements shared profit lack of longevity unlimited liability |
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Term
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Definition
| owned by stock holders, treated by law as an individual |
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Term
| unique characteristics (corporation) |
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Definition
two types:publicly owned and closed corps. earns greatest % of total sales in U.S. |
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Term
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Definition
easy to raise capital limited liability longevity-unlimited life profit to shareholders through dividends or gains specialization thru prof. managment |
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Term
| disadvantages (corporation) |
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Definition
taxed twice corporate and personal income tax lack of personal satisfaction slow decision making complex and many decisions |
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