BASIC FORMS OF

BUSINESS OWNERSHIP
Presented By: Manal Al-Moataz Bellah
 Introduction
 Sole Proprietorship
 Partnership
 Limited Liability Company
 Conclusion
 INTRODUCTION
◦ Business is defined as a legally recognized organization designed to provide
goods or services to consumers , society or governmental entities.
◦ It can be either profit or Non-Profit activities to satisfy the society’s needs &
wants.
Forms Of Business Organizations

Sole
proprietorship

Partnership

Limited Liability
Company
 Sole Proprietorship
◦ A Sole proprietorship : is a business concern owned by one person who often is also engaged actively
in the running of the business.
◦ Although a sole proprietorship is not a separate legal entity from its owner, it is a separate entity for
accounting purposes.
◦ The business’ existence is entirely dependent on the owner’s decisions
 Partnership
◦ A partnership : is defined as a legal relationship between two or more persons where each person contributes
something in order to carry on a lawful business
◦ the two individuals tend to share the profit in a proportion agreed upon by them according to each one’s
contribution.
◦ Advantages:
There is potential to access high amount of money It may be subject to fewer regulations
◦ Disadvantages:
There is true possibility of disputes
Limited life > This can be due to withdrawer or death of a partner.
Limited Liability Company
 Conclusion
◦ Selecting the right business entity is an important decision that could spell the difference between
success and failure, and personal asset protection and tax obligations.

◦ Sole proprietorship are the most common and easiest business structure to form. There is no legal
distinction between the owner and the business in a sole proprietorship.

◦ Partnerships are very similar to sole proprietorships in that owners are responsible for the liabilities of
the company, including those of other partners. Unlike LLCs, there is no additional liability protection
offered by this business structure.