lecture 6 forms of bussiness onwer ship

Question 1

must be able to

Answer 1

1. Compare advantages and disadvantages of sole proprietorship, partnerships, corporations franchising
2. Role of cooperatives in Canada

Question 2

3 forms of business ownership are

Answer 2

Sole proprietorship
Partnership
Corporation

Question 3

Sole proprietorship means

Answer 3

A business that is owned and usually managed by one person
Most common form of business

Question 4

pros & cons of Sole proprietorship

Answer 4

pros
- Eraser to form
- Setting your own work hours
- Ease of starting and ending the business
- No consulting with others for directions
- you keep the profits earned

cons :
Unlimited liability/ risk if personal loss
Limited financial resources
Management difficulties
Overwhelming time commitment
Few fringe benefits (don’t get health benefits you would get from an employer)
Limited growth/life pan
higher taxes

Question 5

Partnership means

Answer 5

A Legal form of business with 2 or more parties