Advantages and disadvantages or sole proprietorship, partnership, and corporations.

Partnership Disadvantages

1. All partners are responsible for acts of another parter. One bad partner and we all suffer. 2. Limited life, when partner dies or leaves you lose part of the business. 3. Potential conflict between partners.

Corporation Disadvantages

1. Difficult and expensive to get a charter. 2. Owners and shareholders have little to no say in how the business is run(ownership separate from management). 3. Double taxation for corporate profit and personal income. 4. Corporations are subject to more government control and regulations.

Partnership Advantages

1. Ease of establishment. 2. Ease of management because each partner bring their own expertise. 3. Lack of special taxes. 4. Easier to get financial capital because banks are more likely to loan money to larger firms. 5. Larger size makes it more efficient 6. Easier to attract workers because you have more specialized labor people went to school for.

Corporation advantages

1. Ease of raising financial capital because of stockholders and bonds. 2. Directors can hire professional managers so you have better management. 3. Limited liability because corporation is responsible not the owners. 4. Unlimited life, corporations exist even after ownership Changes.

sole proprietorship advantages

1. Most profitable because ownwe doesnt share profits. 2. Easy to start. 3. Does not have to pay seperate business taxes 4. Easy to manage because one person makes decisions. 5. You are your own boss.

sole proprietorship disadvantages

1. Unlimited liability 2. Difficulty raising capital(one person income) 3. Size and Efficiency because limited money makes it hard to have enough workers or inventory. 4. Managers often lack business sense 5. Difficulty attracting workers because larger firms offer fringe benefits. 6. Limited life because once ownership changes/dies business is done.