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Forms of business - Coggle Diagram
Forms of business
Sole Proprietorship
Description
In this form of business, owner is responsible for the success or the failure of the business all by himself. Also, any profit or the expense goes to the owner.
Disadvantages
A sole
proprietorship ends with the incapacity or death of the owner. The assets can be inherited by a
person who may even become the operator, but legally the business dies with its owner.
Advantages
There are no other people higher than the owner of the business to consult and to ask something. Plus, they pay lower income taxes than corporations.
Corporation
Description
It is an institution made for making profit. Individual's shares of ownership are represented by stock certificates.
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Advantages
Corporations can attract huge sums of capital and straightly spend them for equipment, research and plants. They also offer higher salaries, so more professionals and experts are included in this form
Partnership
Description
There can be 2 and more owners of the partnership business and medicine, law, insurance and stock brokerage can be seen the most in this form of business.
Disadvantages
Each partner is responsible for all debt and the whole business. It is common that they may argue with each other.
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