Ownership

Question 1

Sole Proprietorship advantages

Answer 1

Easy to establish

Simple decisions

Question 2

Sole Proprietorship disadvantages

Answer 2

Unlimited liability to the owners
No verification of decisions via group consensus
Life of the business = life of the owner
Difficult to raise capital

Question 3

Partnership - Advantages

Answer 3

Easy to establish

Decision making diversified

Question 4

Partnership - disadvantages

Answer 4

Unlimited liability
Difficult to attain consensus
Limitations on capital raised

Question 5

Corporation - Advantages

Answer 5

Limited liability
Can Hire management expertise
Unlimited life
Easier to raise capital

Question 6

Corporation - disadvantages

Answer 6

Complex management structure
Slower decision making
Costly

Question 7

Advantages of Public corporations

Answer 7

greater access to funds

Easier to sell existing shares

Question 8

disadvantages of Public corporations

Answer 8

High costs related to going public
Additional reporting requirements
Increased pressure on short-term

Question 9

3 Types of Extents of ownership

Answer 9

Direct
Outsourcing
Strategic Partnerships