| A | B |
|---|
| individual (sole) proprietorship | Business owned by one individual. |
| cooperative | Business owned by members and is a non-profit. |
| Most common form of business organization in the US. | individual (sole) proprietorship |
| partnership | A business owned by two or more partners. |
| corporation | A business formed by stockholders who purchase shares of ownership in the business. It can enter into contracts, buy, sell, sue, and be sued. |
| cooperative | The purpose of this business organization is to help members in combining their economic power to gain better prices from suppliers. |
| advantage of individual proprietorship | Owner receives all of the profits |
| advantage of individual proprietorship | Simple to begin and end business |
| disadvantage of individual proprietorship | Cash borrowing limited |
| disadvantage of individual proprietorship | Owner bears alls responsibility for losses |
| advantage of partnership | Someone to help share the work load |
| advantage of partnership | Ability to pool resources among partners |
| disadvantage of partnership | Partners responsible for loss |
| disadvantage of partnership | Disagreements among partners costly |
| disadvantage of partnership | One partner can’t sell or leave |
| advantage of cooperative | Member cooperate to provide common service |
| disadvantage of cooperative | Membership restricted to specified group |
| advantages of corporation | the stockholders are not responsible for actions of business |
| advantages of corporation | Can raise funds by selling stock |
| advantages of corporation | survives after the death of owners |
| disadvantage of corporation | Subject to double taxation |
| disadvantage of corporation | More government regulation |
