| A | B |
|---|
| Sole Proprietorship | Type of business owned by a single person (or married couple). |
| Sole Proprietorship | Most (3/4) are this type of business. |
| Sole Proprietorships | Advantages of this type of business are: No corporate tax, only personal income, less paperwork, easier to open, owner has complete control and gets all profits. |
| Sole Proprietorships | Disadvantage of this type of business are: Owner can be held personally liable for debts and things employees do. They can lose everything. |
| Partnership | Type of business owned by two or more people. |
| Partnerships | Advantages of this type of business are: Resources and capital are pooled, no corporate tax, less paperwork, easier to start up, shared management. |
| Partnerships | Disadvantages of this type of business: One owner is liable for the other owner, liable for employees, can lose everything, owners must agree on all decisions. |
| General Partner | In a partnership, this is a type of partner where they are completely liable. |
| Limited Partner | In a partnership, this is a type of partner where they can only lose their investment, not their personal property. |
| Corporation | Type of business that has a great many owners, and often sells stock to investors. |
| Dividends | Share of profits that some corporations gives to investors. |
| Limited Liability Corporation | Type of corporation that protects its owners from getting sued for their personal property - they can only lose what they've invested in the business. |
| Incorporation | Legal process of forming a corporation through state government. |
| Corporations | Advantages of this type of business: Big pool of capital, lower risk to investors. |
| Corporations | Disadvantages of this type of business: Double taxes (corporate tax plus profit), shareholders make decisions, not leaders. |
| Non-Profit Organizations | Type of business organized to provide a service and not to make money for owners or stockholders. |
| Non-Profit Organizations | Advantages of this type of business are: No taxes, earnings go right back into organization after expenses. No stockholders. |
| Non-Profit Organizations | Disadvantages of this type of business: Those that work for the organization cannot campaign or lobby, more oversight and regulation from the government. |
