BU111 Lecture Notes - Lecture 38: Sole Proprietorship, Small Business, Limited Partnership
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BU111 Full Course Notes
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What are they, why do they exist, advantages and disadvantages. Traditional forms of ownership: sole proprietorship, partnership, corporation, public vs. private corporations. If you decide to open a mcdonalds, you go to the parent company and pick a location, and they will build it. Disadvantage: little control, cannot change it, must pay royalties. Advantage: benefit from another company"s experience, brand and training. Owned and run by one person; business and owner are one and the same. Legally, your business is considered to be an extension of yourself can be small or large. Advantages: complete control over profits and decisions: don"t have to consult anybody on your choices or share your profits with anyone, ease of formation: don"t even need to register business name. But since business=owner, losses can be deducted do not want to lend money to sole proprietorship, unless you pledge personal from personal income assets.