Business forms, their advantages and problems
Sole proprietorship
They are easy to organize
Decisions can be made quickly
Owners receive all profits
Limited liability
Personal property
Limited life of business
Partnership
Equal capital, authority
Decisions can be made quickly, profits are shared with only a few people, and the owners are responsible for success or failure of the business
Responsible for the debts of the business
Limited life of business
Unlimited liability
Corporation
Charter of incorporation
Share of stock
Limited liability
Have the ability to raise very large amount of money
Continues to function despite death, transfer, or return on a bond, the investor, a certain amount of money on a certain date
The ease of ownership transfer
Unlimited life of business
Profits are subject to a double taxation
Owners don't directly control the business