| A | B |
|---|
| Sole Proprietorship | Owned by 1 person and usually works in the business |
| Sole Proprietorship | More than 2/3rds of U.S. businesses. |
| Sole Proprietorship | Easy to start. |
| Sole Proprietorship | Owner is liable for all debts. |
| Partnership | Owned and managed by a small group. |
| Partnership | Owners have unlimited liability. |
| Partnership | Each partner shares the profits/losses. |
| Partnership | Each partner is bound by the business decisions the other partner makes. |
| Articles of Partnership | A written agreement that provides details of how the partnership will operate. |
| Corporation | Owned by a number of people: could be a few but usually many. |
| Corporation | Owners liable up to the amount of their investments. |
| Corporation | Difficult to start. |
| Corporation | Owners do not have control of decisions made each day. |
| Corporation | Ownership is transfered through the sale of stock. |
| Certificate of Incorporation | A document issued by the state government, giving permission to start a corporation. |
| Shareholders (Stockholders) | A person who owns stock in a corporation. |
| Board of Directors | A group of people elected by stockholders to guide a corporation. |
| Franchise | A written contract granting permission to sell someone else's product or services in a certain period of time in a certain place. |
| Franchise | Can be operated as a sole proprietorship, partnership, or corporation. |
| Franchisor | THe parent company that grants permission to a person or group to sell its products or services. |
| Franchise Agreement | States the duties and rights of both parties. |
| Franchise | You already have an established name. |
| Franchise | Usually requires a large investment to start. |
| Cooperative | Two types: Consumers and Producers. |
| Cooperative | Owned by the members and is managed in their interest. |
| Non-Profit Corporations | Services are provided for citizens with the money from taxes levied rather than for a profit. |
| Non-Profit Corporations | American Red Cross, Boy Scouts of America, FBLA |
| Corporations | IBM, GM, Texaco |
