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Business Ownership Types (Sold Proprietorship (It's the simplest…
Business Ownership Types
Sold Proprietorship
It's the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.
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Disadvantages
Unlimited liability
Difficulty raising capital
Lack of financial control and difficulty tracking expenses
Franchise
is a business opportunity that allows the franchisee (possibly you) to start a business by legally using someone else's (the franchiser's) expertise, ideas, and processes.
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Disadvanteges
Entering into a formal agreement with your franchiser
There may be little room for creativity
Ongoing sharing of profit with the franchiser.
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Partnership
Is a form of business where two or more people share ownership, as well as the responsibility for managing the company and the income or losses the business generates.
Advantages
Two heads (or more) are better than one
Our business is easy to establish and start-up costs are low
More capital is available for the business
You’ll have greater borrowing capacity
Disadvantages
The liability of the partners for the debts of the business is unlimited
Each partner is liable for their share of the partnership debts as well as being liable for all the debts
There is a risk of disagreements and friction among partners and management
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