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  • Advantages of Sole Proprietorship

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    The document discusses the advantages and disadvantages of different business structures including sole proprietorships, partnerships, corporations, and franchises. Sole proprietorships have few requirements but the owner is personally liable for debts. Partnerships have more financial resources but profits and liability are shared and disagreements can occur. Corporations can raise money through stock but are subject to double taxation. Franchises have less risk but come with restrictions and costs. The author concludes they would prefer a partnership structure for a jewelry store to have help running it while maintaining control.

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    The document discusses the advantages and disadvantages of different business structures including sole proprietorships, partnerships, corporations, and franchises. Sole proprietorships have few requirements but the owner is personally liable for debts. Partnerships have more financial resources but profits and liability are shared and disagreements can occur. Corporations can raise money through stock but are subject to double taxation. Franchises have less risk but come with restrictions and costs. The author concludes they would prefer a partnership structure for a jewelry store to have help running it while maintaining control.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    20 views10 pages

    Advantages of Sole Proprietorship

    Uploaded by

    api-308734768
    The document discusses the advantages and disadvantages of different business structures including sole proprietorships, partnerships, corporations, and franchises. Sole proprietorships have few requirements but the owner is personally liable for debts. Partnerships have more financial resources but profits and liability are shared and disagreements can occur. Corporations can raise money through stock but are subject to double taxation. Franchises have less risk but come with restrictions and costs. The author concludes they would prefer a partnership structure for a jewelry store to have help running it while maintaining control.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 10

    Advantages and

    Disadvantages
    BY: EVIE BOURGUIGNON

    Advantages of Sole
    Proprietorships

    NO corporate tax payments

    Few formal business requirements

    Has complete control and decision-making over the business

    Its easy to change your legal structure later if circumstances


    change

    Disadvantages of Sole Proprietorship

    The business can be held personally liable for the debts


    and obligations of the business

    Most Sole Proprietors rely on loans and personal asset to


    finance their business

    Advantages of Partnership

    Stable supply of high-functional materials

    There is limited external regulation

    More financial resources

    Shared management

    Disadvantages of Partnerships

    Shared profits

    Disagreements can occur

    Multistate operation problems

    The liability of the partners for debts of the business is unlimited

    Advantages of Corporations

    Can raise money by issuing shares of stock

    Can hire experts to professionally manage each aspect of the


    business

    External sources of funds

    Disadvantages of Corporations

    Extensive paperwork

    Double taxation

    Start up is costly

    Limited liability

    Advantages of Franchises

    Less risk

    Access to funding

    Supported by the benefits of a big business network

    You dont really need business experience to run a franchise

    Disadvantages of Franchises

    Large start up cost

    Restrictions on selling

    Less independence

    Restrictions on how you can run the business

    My choice of business
    If I were to open a business it would be a Jewelry store, The type of
    ownership I would like to have is partnership because

    I would have other people to help me when working

    I would still be the boss of the business

    If there were to be any disagreements I might lose a co-worker


    but I wouldnt lose everything I have

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