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Types of Business Organization
Self-Paced Overview
Types of Business Organization
Sole Proprietorship
A Sole Proprietorship consists of one individual doing business.
Advantages
1. Low start-up costs
2. Ownership of all profits
Disadvantages
1. Unlimited liability
2. Limited commercial life
Partnership
A Partnership is made up of two or more individuals doing business together.
Advantages
1. Access to greater amounts of capital
2. Possible synergism
Disadvantages
1. Same as with sole proprietorships
2. Partnership disputes
Corporation
A Corporation is a legal entity doing business. It is made up of many owners and is organized under articles of incorporation.
Advantages
1. Limited liability
2. Unlimited commercial life
Disadvantages
1. Higher organization cost
2. Restrictions on company
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This overview was developed by Dr. Sharon Garrison.
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