What are the different forms of business ownership and what are their dis and adv?

Sole Proprietorship

A sole proprietorship is a business owned by one person who is known as the proprietor. 

Advantages Include:

• owner receives all of the profits if the business does well
• The working relationship between partners
• No corporate tax payments
• Minimal legal costs to forming a sole proprietorship

Disadvantage Include:

• owner has a wide range of responsibilities including sales, finances, personnel 
• owner is responsible for business its losses (unlimited liability)
• Money to run the business usually come from the owner’s savings, friends, family, or from a bank loan

Partnership

A partnership refers to a type of business in which two or more individuals share the costs and responsibilities of owning and Operating the business. 

Advantages Include:

• The liability of the partner for the debts of the business is unlimited.
• Partnerships are relatively easy to establish.
• Partnerships can be cost-effective as each partner specializes in certain aspects of their business.

Disadvantages Include:

• Business partners are jointly and individually liable for the actions of the other partners.
• there is a risk of disagreements and friction among partners and management.
• If partners join or leave, you will probably have to value all the partnership assets and this can be costly.

Corporation

A corporation is a business granted legal status with rights, privileges, and Liabilities (debts) that is distinct from those of the people who work for the business.

Advantages Include:

• Additional capital can be raised easily through stock markets, etc.
• The liability of the owners towards the creditors is limited to their investment in the company. 
• Corporations may deduct the cost of benefits it provides to employees and officers.

Disadvantages Include:

• Forming a corporation requires more time and money than forming other business structures.
• Governmental agencies monitor corporations, which may result in added paperwork.
• Double taxation 

Co- operative 

A co-operative is owned by the workers or members who buy the products or use the services that the business offers.

Advantages Include: 

• Generally inexpensive to register.
• All members must be active in the co-operative.
• Members have an equal vote at general meetings regardless of their level of investment or involvement.

Disadvantages Include:

• Longer decision making process
• There is usually limited distribution of profits to members
• Requires ongoing education programs for members.

Franchise 

The franchiser essentially licenses the rights to its name, operating procedure, designs, and business expertise to another business called the franchisee.

Advantages Include:

• Brand recognition 
• Ready-made business 
• Shared marketing

Disadvantages Include:

• There is no creativity of owner 
• There is a monthly franchise fee
• Franchise fee is expensive 

 These are the forms of Business Ownership and the advantages along with the disadvantages 

                                         Thank you and have an amazing Year 2018!!!!!

Fun fact#6 I love to just think about what im thinking, if that makes any sense