Chp 6.

1
WEEK 1 – LESSON 2
Chapter 6
Business Ownership and
Operations

Section 6.1
Types of Business
Ownership
Graphic Organizer
Disadvantages of Sole Proprietorships

Limited access Many run out

to credit(loan) of money

The owner may not have The business ends

the necessary skills when the owner dies
 Sole Proprietorships

unlimited liability
when the owner is
Q: What is the major disadvantage of responsible for the
owning a sole proprietorship? company’s debts(loan)
Ans: is that the owner has unlimited liability.
 Partnerships

Q: To start a partnership, what is

partnership
required? a business owned by two
Ans: partnership agreement. or more people who share
its risks and rewards
Graphic Organizer
Advantages (Pros) of Partnerships

Easy to Easier to Easier to

start obtain capital obtain credit

Not dependent
Only taxed Diversity in
on a sole
once skills
person
Graphic Organizer
Disadvantages (Cons) of Partnerships

If one partner
Unlimited legal
Business profit is makes a mistake,
and financial
shared all partners are
liability is shared
responsible
 Self Assessment
Q: If a partner makes a bad decision, what
responsibility do the other partners have?