Forms of

Entrepreneurial Venture
FORMS OF BUSINESS
• Sole Proprietorship
• Partnership
• Corporation
 SOLE PROPRIETORSHIP

is a business venture owned by one

person only.

a business that can be owned and

controlled by an individual, a company or a
limited liability partnership.
 SOLE PROPRIETORSHIP
The word "Sole" which means single and
the "Proprietorship" which means
ownership.
The legal business activities which is
owned and control by an individual
 FEATURES OF SOLE
PROPRIETORSHIP
Only one will be the owner of the business.

The formation of sole enterprises is very

easy. There are afew documents, sometimes
no document to be needed for forming
single enterprise.
 FEATURES OF SOLE
PROPRIETORSHIP

Owner always involve with the activities of

single ownership business. That is why
owner has direct relation with business

Full amount of profit or loss will be entitled

by the owner.
ADVANTAGE OF SOLE PROPRIETORSHIP

Easy management
Low tax
Proper decision making
Personal relation with the costumer
Better control
 DISADVANTAGE OF SOLE
PROPRIETORSHIP
Unlimited liability
Limited capital
Lack of stability
Limited size
Lack of expert management
 PARTNERSHIP
A partnership is a business venture
that is owned by two or more persons.
The owners are usually called
partners.
 PARTNERSHIP
Whatever profit or loss the results from the
entrepreneurial operation is divided between or
among the partners.
The relationship of partners depends on
contract among them.
 PARTNERSHIP

The profit which is earned from the

partnership business must be shared
among the partners according to the
predetermine ratio.
 ADVANTAGE OF PARTNERSHIP
More capital
Joint efforts
Collective decision
Sharing of risks
Efficient administration
DISADVANTAGE OF PARTNERSHIP

Delay in decision making

Limitation of capital
Lack of mutual trust
WHO CAN BE OR CAN NOT BE
A PARTNER
 WHO CAN BE OR CAN NOT BE A
PARTNER
Who can be?
Any person who is qualified to
make a contract can be a partner of a
partnership business.
WHO CAN BE OR CAN NOT BE A
PARTNER
Who can not be?
A minor
A man of unsound mind
Mentally sick person
Insolvent person
 CORPORATION
A corporation is a business entity that is
owned by its shareholder(s), who elect a
board of directors to oversee the
organization's activities.

The persons originally forming the

corporation are called incorporators.
 ADVANTAGE OF CORPORATION

• The life of the corporation can

extend beyond that of the founders
• Owners benefit from limited
liability.
• Better access to capital
 DISADVANTAGE OF CORPORATION

• the company can be expensive to

establish
• the reporting requirements can be
complex
• your financial affairs are public
• profits distributed to shareholders are
taxable.
Thank you!