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Types of firm - Coggle Diagram
Types of firm
Sole proprietorship
Advantages
Easy to organize
Quickly decisions
Owner receives all profits
Disadvantages
Limited life of the business
Limited resources for starting own business
Unimited liability (risk of loss of personal property)
Partnership
Advantages
Sharing of loses
Easy to organise
Quickly desisions
Disadvantages
Sharing of profits
Unlimited liability (risk of loss of personal property)
Limited life
Corporation
Disadvantages
Dividends
Need to get a charter of incorporation
Double taxation
Lack of direct control of the business
Advantages
Ability to raise amount of money needed
Issuing shares of stock
Receiving money from investors
Limited liability