Forms of Business Ownerships
Sole Proprietorship
Advantages
Easier to start and end
Quick decision making
Keeps all the profits
Low costs and expenses
Disadvantages
Unlimited Liability
Can result in loss of personal assets
Lack of skills and expertise
Limited access to resources
Corporation
Advantages
Limited Liability
Ownership is easier to transfer
Financing is easier
Disadvantages
Time consuming
Governed by board of directors
Higher costs
Partnership
Advantages
Easier to establish
Lower costs
More capital
Additional knowledge
Disadvantages
Have to split the profits
Opinion differences
Liable for all debts
Slower decision making
Franchise
Advantages
Reduced risk of failure
Expertise
Higher profits
Disadvantages
Lack of control
Investments and cost will be expensive
Very less individual control even if your boss
Co-operative
Advantages
Equal voting for all members
Limited Liability
Different responsibilities
Disadvantages
Equal voting rights regardless of investments
Less operational control
Fixed prices