Forms

of small
busines
s
Sole Proprietorship
A sole proprietorship
is a business owned
and operated by a
single person.
Majority of
businesses are
owned by sole
Advantages of Sole
Proprietorship
1. East and cost of
formation
2. Secrecy
3. Distribution and use
of profits
4. Control of the
business
5. Government
 Disadvantages of
sole proprietorship
• Possibility that the
owner lacks ability and
experince
• Difficulty in attracting
and keeping quality
employees
• Difficulty in raising
additional capital
 Partnership
• Is a legal
association of two
or more person as
co-owners of an un
incorporated
business.
Types of partnerships

1.General
partnership;
and
2.Limited
 ADVANTAGES OF
PARTNERSHIP
1.Ease of formation
2.Pulling of knowledge
and skills
3.More source of capital
4.Ability to attract and
retain employees
5.Tax advantages
Disadvantages of partnership

1.Unlimited liability
2.Limited life
3.Potential conflict
between partners
Corporation
• A corporation is
legally chartened
enterprise with
most of the legal
rights of a person,
including the right
to conduct a
Advantages of corporation

1.Limited liability
2.Ease of expansion
3.Ease of
transferring
ownership
4.Relative long life
5.Greater ability to
 Disadvantages of
corporation
1.Double taxation
2. Excessive tax
filings
3. Independent
 Summary
Depending in inclination and the environment
the small business operator is afforded with
three business ownership choices:
• sole proprietorship
the greatest advantage of sole
proprietorship is the sole of the power to
control which is vested in the power.
• Partnerships
Provide opportunities for additional sources of
capital but power has to be shared among
the partners
• Corporation