2. Sole Proprietorship
Advantages Disadvantages
 The owner controls all  The owner is completely
aspects of their business. liable for everything.
 Has an inexpensive start-  The success of the
up cost. business relies solely on
 All the profits from the the skills of
business is received by determination of the
the owner owner.
 Least regulated by the  In the case of the death
government. of the owner the
 Business pays no taxes business will dissolve.

3. Partnership
Advantages Disadvantages
 Is inexpensive to create  It is the least preferred out
the business along with of all the types of
your partner. businesses.
 It is hard to dissolve a
 The general partner of partner without ruining the
the business makes all business.
the final decisions.  Partners tend to eventually
 All business ideas can have personality conflicts
be shared and differences.
 Each partner is liable for
 All investments can be each others’ actions.
secured easily.

4. Corporation
Advantages Disadvantages
 There is limited liability for the owner  Very expensive to
or owners. create and start-up,
Owner(s) can easily raise

investment money. costing between $500k
 Employees who work for the to $2,500,000
business earn benefits.
 The business has a certain status for  The income of the
example Wal-Mart is highly known
and praised business.
business is heavily
 The company will still exist after the taxed.
owner dies  Owner(s) must pay
Corporation businesses get tax

advantages taxes on all of their
profits.

5. Interpreting Results
Business with most Business with most
advantages disadvantage
 The type of business with the  The type of business with the
most advantages was a most disadvantages was
Corporation. Mainly because Partnership. This is primarily due
once it is created it has been to the fact that people who in
established, and can only be a partnership usually tend to
discontinued by the owners. “butt heads”, and have
Also owners are safer from conflicts. Also every person is
liability, if the business were to liable if only one person makes
get sued. Another big thing is a mistake. Many people don’t
that employees get benefits, prefer to work with other
so all around the advantages people in situations like owning
for Corporations stand out and operating a business, due
much more. to the fact that not everybody
sees eye to eye all the time.

6. Drawing Conclusions
Make Your Selection Ice Skating Rink
 Based on the information  If I were to open up an ice
provided in this skating rink, it would probably
presentation, Would you be best to do it as a sole
choose the type of proprietorship. I say that
because a business like this
business with the most would be very small, and easy
advantages? Choosing a to manage with one person.
Corporation can be a wise The only set back to this
decision, however one of decision, would be that if
the disadvantages was it is something were to happen me
very expensive to start up a as the owner would be liable
business of this size. for anything that happens.