BU111 Lecture Notes - Lecture 38: Sole Proprietorship, Small Business, Limited Partnership
wafeliza and 39872 others unlocked
19
BU111 Full Course Notes
Verified Note
19 documents
Document Summary
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.