Forms of business organisations

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Forms of business orgs
- Sole proprietorship: owned by one person;
  - Least regulated; owner can keep all the profits; taxed once as personal income
  - unlimited liability; amount of equity that can be raised in limited; difficult to transfer ownership; business dies with owner
- Partnership: formed by 2 or more people or firms
  - all partners share losses; easy and inexpensive to form;
  - unlimited liability; limited life of business; ownership transfer is difficult; inability to raise equity
- Corporation: business created as a distinct legal entity- has the rights, duties and privileges of an actual person
  - complicated to start; separation of ownership & mgmt; double taxation
  - ownership can be easily transferred; unlimited life of firm; limited liability; easier to raise capital
Sole proprietorship: owned by one person;
- Least regulated; owner can keep all the profits; taxed once as personal income
- unlimited liability; amount of equity that can be raised in limited; difficult to transfer ownership; business dies with owner

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