What are the different forms of business ownership and what are their dis and adv?

Sole Proprietorship

A sole proprietorship is a business owned by one person who is known as the proprietor.

Advantages Include:

owner receives all of the profits if the business does well
The working relationship between partners
No corporate tax payments
Minimal legal costs to forming a sole proprietorship

Disadvantage Include:

owner has a wide range of responsibilities including sales, finances, personnel
owner is responsible for business its losses (unlimited liability)
Money to run the business usually come from the owner’s savings, friends, family, or from a bank loan

Partnership

A partnership refers to a type of business in which two or more individuals share the costs and responsibilities of owning and Operating the business.

Advantages Include:

The liability of the partner for the debts of the business is unlimited.
Partnerships are relatively easy to establish.
Partnerships can be cost-effective as each partner specializes in certain aspects of their business.

Disadvantages Include:

Business partners are jointly and individually liable for the actions of the other partners.
there is a risk of disagreements and friction among partners and management.
If partners join or leave, you will probably have to value all the partnership assets and this can be costly.

Corporation

A corporation is a business granted legal status with rights, privileges, and Liabilities (debts) that is distinct from those of the people who work for the business.

Advantages Include:

Additional capital can be raised easily through stock markets, etc.
The liability of the owners towards the creditors is limited to their investment in the company.
Corporations may deduct the cost of benefits it provides to employees and officers.

Disadvantages Include:

Forming a corporation requires more time and money than forming other business structures.
Governmental agencies monitor corporations, which may result in added paperwork.
Double taxation

Co- operative

A co-operative is owned by the workers or members who buy the products or use the services that the business offers.

Advantages Include:

Generally inexpensive to register.
All members must be active in the co-operative.
Members have an equal vote at general meetings regardless of their level of investment or involvement.

Disadvantages Include:

Longer decision making process
There is usually limited distribution of profits to members
Requires ongoing education programs for members.

Franchise

The franchiser essentially licenses the rights to its name, operating procedure, designs, and business expertise to another business called the franchisee.

Advantages Include: