CERCA Entrepreneurship (Types of Business Ownership)

Read the article published by "The Money Alert" titled "Types of Business Ownership". After reading the article identify which characteristics align with which type of business ownership. Sole Proprietorship Owned by one person Easiest form of ownership to start Assume responsibility for all debts Receive all the income Only taxed once on personal income Partnership Owned by two or more The law does not distinguish between business and owners Should have legal agreement that outlines how decisions will be made Profits are shared amongst owners Ends if one withdrawals or dies Corporation The business is seen as a unique entity (as its own person) Run by a board of directors Taxed Twice Can raise funds through the sale of stock Monitored by federal and state agencies Requires the most time and money to form Joint Venture Intended to be for a limited time If the activity is repeated it will become a partnership If I wanted to be my own boss, which type of business ownership would be the most appropriate? Use at least one piece of evidence from the matching section to support your decision. If there was a business that was running successfully, but cannot keep up with the demand for products, which type of business ownership would be the most appropriate? Explain your answer using at least one piece of evidence from the matching section to support your decision.