Forms of Business Organization Comparison Sabrina Baftiri

List characteristics for each form of business organization as you respond

to each question at the left.
Characteristics Sole Partnership Corporatio Multi-National
Proprietorship n

Describe the A business A business A form of A corporation

owners of this owned and owned by two business that has
form of operated by one or more organization manufacturing
organization. person, smallest people. Shares recognized or service
sized business some by law as a operations in
and most strengths and separate a number of
common. weaknesses legal entity different
as a sole having all the countries.
proprietorship. rights of an
individual.
Advantages 1.Ease in which it 1.Ease of 1.Ease of raising 1.Help spread
can be started establishment financial capital new technology

2.Ease of 2.Ease of 2.Hire the best 2.They generate

management management talent available new jobs where
they are needed
3.Keep all profits 3.Lack of taxes 3.Limited liabiltiy
3.Produced tax
4.Be your own boss revenue for the
host country

4.Consumer
benefits

Disadvantages 1.Unlimited liability 1.Fully responsible 1.Difficult and 1.They may

for other partners expensive to influence political
2.Difficult in raising gain a charter life of a host
financial capital 2.Limited life nation
2.Owners have
3.Not big enough to 3.Potential conflict little say in 2.Exploit the
operate efficiently between owners running economy of a host
business nation by paying
 4.Liability of the low wages to
partners for the 3.Expensive workers, exporting
debts of the taxes on profits scarce national
business is resources, or by
unlimited. interfering with
local businesses

3. When a plant is
built abroad, they
take away jobs at
home.

Is this form of Easy Easy Difficult Difficult

business easy or
difficult to start?
Who receives the Owners Owners Stock holders Stock holders
profit from this
form of business?

What are Letty Maes Corleones Starbucks Apple

examples of this
form of business?
answers may
vary