BUSINESS ORGANIZATIONS

Types of Organizations

Prop

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rshi

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Partn

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Corpo

ratio

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102030405060708090

100

# of firms% of profits

Sole Proprietorship

ADVANTAGES DISADVANTAGES

Be your own boss Keep all the profits Less paperwork Low regulation

Limited access to money

Full liability Time Lack permanence

Partnership

ADVANTAGES DISADVANTAGES

Easy to start Specialized skills Tax incentives Fringe benefits

Potential for conflict Limited Liability General Partnership

Corporation

ADVANTAGES DISADVANTAGES

Legal liability Buy/ad power Expertise Capital Stock

Lose control Regulation Scope Competition

Franchise

ADVANTAGES DISADVANTAGES

Training Product Ads Loans

Royalties Restrictions Products

Other Organizations

Nonprofit – functions like a business for benefit of society not to make profits

Cooperative – collection of business persons for their mutual benefit

Summary Questions

Based on information about the business organizations, which would fit your personality and career choice the best? EXPLAIN.