Forms of Business Ownership

Forms of Business Ownership

There are three basic forms of business ownership, each with advantages and disadvantages:
• Sole Proprietorship--ownership by an individual
• Partnership--ownership by two or more persons
• Corporation--ownership by stockholders

Worksheet

Advantages of the various forms of business ownership include:
1. An advantage of a sole proprietorship is the ownership of all _________________.
2. An advantage of a partnership is the benefit of _____________________ ____________________ skills.
3. An advantage of a coprorate form of ownership is ______________________ financial liability.

Disadvantages of the various forms of business ownership include:
1. A disadvantage of a sole proprietorship is ____________________ financial liability.
2. Disadvantages of a partnership are __________________ financial liability and _____________________ conflicts.
3. Formation and disolution of a corporation may be ________________ and _________________ to establish.