| A | B |
|---|
| Proprietorship | a business owned by one person who takes all the risks and receives all the profits |
| Corporation | a business where owners are only liable for the amount of money invested |
| Partnership | a business with 2 or more owners who share the risks and the profits |
| stockholders | part owners of a corporation |
| liability | responsibility |
| entrepreneuer | a person who takes the risk of starting a business |
| profit | the reason most people start a business |
| Advantage of a Corporation | money can be more easily raised |
| Disdvantage of a Corporation | difficult to set up legally |
| Advantage of a Proprietorship | Owner receives all of the profits from the business |
| Disadvantage of a Proprietorship | One owner takes all the risks and debts occurred |
| Advantage of a Partnership | More than one person is taking the risks for the business and making decisionss |
| Disadvantage of a Partnership | having to share the profits |
