Assignment

Anmol Singh
BBA3
Explain 4 types of ownership with advantages and
disadvantages for a startup company..

1) Sole Proprietorship- The sole proprietorship is the simplest

business form under which one can operate a business. The sole
proprietorship is not a legal entity. It simply refers to a person who
owns the business and is personally responsible for its debts.
Advantages
 Ease of Formation and Closure: ...
 Simplicity of Operation and Flexible Management: ...
 Sole Beneficiary of Profits: ...
 Benefits of Small-Scale Operations: ...
 Prompt Decisions: ...
 Retaining Secrecy: ...
 Social Desirability: ...
 Tax Advantage:
Disadvantages
1 Small Size
2. Limited Shelf Life
3. Lacks Professional Skills and Talent
4. See the Big Picture
5. Unlimited Liability
2. Partenership
Two types of partnership
 1) General partnership- A general partnership is a
business arrangement by which two or more individuals
agree to share in all assets, profits, and financial and legal
liabilities of a jointly-owned business
Advantages
Easy to Create.
Flow of Personal Income
Flexibility.
Disadvantages
 Easy to Dissolve.
: Little Protection.
Lack of Structure

2) Limited partnership- A limited partnership exists

when two or more partners go into business together, but
one or more of the partners are only liable up to the
amount of their investment. The general partner of the LP
has unlimited liability.
Advantages
 Unlimited Shareholders
 Certain Tax Advantages
 Utilization of Financial/Managerial Strengths of Partners
 Unlimited Cap on Capital Acquisition with Partnership
Agreement
 Liability Protection for Limited Partners
Disdvantages
 Extensive Documentation Required.
 Lack of Legal Distinction for General Partners.
 General Partners' Personal Assets Unprotected.
 General Partners Liable for Each Others' Actions.
 Less Protection from Excessive Taxation.

3) Corporation-Cooperation is the process of groups of

organisms working or acting together for common, mutual,
or some underlying benefit, as opposed to working in
competition for selfish benefit. Many animal and plant
species cooperate both with other members of their own
species and with members of other species.