This document discusses different forms of business ownership, including sole proprietorships, partnerships, and corporations. Sole proprietorships are owned by one person and are easy to start but provide unlimited liability. Partnerships involve two or more owners who share decision-making and profits but may disagree. Corporations are chartered by states, provide limited liability to owners, and have separate legal status from owners but more complex tax structures. The document provides advantages and disadvantages of each form of ownership.

1. EMS
FORMS OF OWNERSHIPS

2. LESSON OUTCOMES AND OBJECTIVES
At the end of this lesson learners should be able to :
• Name different types of ownerships.
• Reasons why it is important to know different kinds of
ownerships
• Explain each type of ownership and give its advantages and
disadvantages.

3. INTRODUCTION
• There is no best form of ownership.
• An entrepreneur chooses the form of ownership which is best
for her/ his business.
• https://www.slideshare.net/nonkululekoS/forms-of-
ownership-32065666

4. THE IMPORTANCE OF OWNERSHIPS IN A
BUSINESS
• Ownership helps to run and organize a business
• The company structure is defined in a number of documents,
all of which are important in establishing ownership.

5. FORMS OF OWNERSHIPS
Main forms of
ownership
Sole
proprietorship
partnership corporations

6. SOLE PROPRIETORSHIP

7. SOLE PROPRIETORSHIP CONTINUING…
• Sole proprietorship is the business owned by one person.
• Most common in retailing ( sell goods to the public), service
and agriculture.
• Its is easy to start and end business.
• The money to start is provided by a sole owner.

8. SOLE PROPRIETORSHIP
HTTPS://WWW.SLIDESHARE.NET/NATJOHNSON/F
ORMS-OF-BUSINESS-OWNERSHIP-43144933
Advantages disadvantages
Ease and low cost to start a business Unlimited liability of the owner for debts.
All profit received by the owner. Difficulty in raising capital.
Owner controls a business without
someone help.
No legal personality
Absence of special taxes When the owner is ill, business will not
open.

9. PARTNERSHIP
• The business consists of two or more people in business.
• Terms of partnership are recorded as partnership agreement.
• https://www.slideshare.net/amckean/types-of-business-
ownership-31220433

10. TWO TYPES OF PARTNERSHIP
• General partnership:
 all partners have unlimited liability
• Limited partnership:
Partners are only responsible for their share.

11. PARTNERSHIP
HTTPS://WWW.SLIDESHARE.NET/JIMBER0910/TY
PES-OF-BUSINESS-
ORGANIZATION?NEXT_SLIDESHOW=1
Advantages disadvantages
Two or more people share decision
making process
They share profit
One person may be better at one task than
the other partner.
Partners could disagree and hate each
other for a long period of time.
There is ability to raise money Partners can bankrupt money in a
business

12. CORPORATION FORM

13. CORPORATION
• It a form of business where the business organization are
chartered by the state and act as a separately entity from its
owners.
• It provide limited liability to owners.
• It has different tax structures than other business structures.
• https://www.slideshare.net/parrc/business-ownership-
8829066

14. CORPORATION
Advantages disadvantages
Limited liability Limited returns
Member financing Difficult to sell stock
Lower taxes Slow to change

15. CONCLUSION
• Forms of ownerships consists of three types, sole
proprietorship, partnership and corporation.
• THANK YOU

16. REFERENCES
• https://www.slideshare.net/nonkululekoS/forms-of-ownership-
32065666
• https://www.slideshare.net/NatJohnson/forms-of-business-
ownership-4314493
• https://www.slideshare.net/amckean/types-of-business-ownership-
31220433
• https://www.slideshare.net/jimber0910/types-of-business-
organization?next_slideshow=1
• https://www.slideshare.net/parrc/business-ownership-8829066