ADVANTAGES DISADVANTAGES

(1) Strong Personality (1) Abuse of Corporate

(2) Centralized Management
(3) Limited Liability to the
investors
(4) Free Transferability of Units
of Investments
Management
(2) Abuse of Limited liability
feature
(3) High cost of maintenance
(4) Double Taxation
(5) Lack of Personal Element

1) SOLE PROPRIETORSHIP- Here, it is the owner who controls the business while in a corporation, it is the Board of
Directors.

2) PARTNERSHIPS- The most important distinction between a partnership and a corporation is their legal capacities.
A corporation has a stronger legal capacity. Enabling it to continue despite death, insolvency or withdrawal of any of its
stockholders or members. Limited Liability is a main feature in a corporate setting, whereas partners are liable
personally foe partnership debts. Generally, every partner is an agent of the partnership and by his sole act, he can
bind the partnership whereas in a corporation, only the Board of Directors or its agents can bind the corporation.
Here are the features of a partnership:
Delectus Personarum
- Selection of Partners; No outsider can come in without the consent of all partners
- Prevents the development of any market for units of ownership because of no assurance that buyers
would be able to become partners
- Mutual Representation
- Power to Dissolve
Mutual Agency
- Each partner can legally bind the business enterprise
- Business may be undermined by act of one foolish partner
Unlimited Liability
Community of Interest
- Co-ownership of capital or property