Professional Documents
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Common Forms of Business
Common Forms of Business
Partnership
Advantages
Easy to manage the business.
All decision made by the owner-
manager.
Low start up capital, no heavy
investment.
Flexibility in operation.
Disadvantages
Limited source of capital
Lack of capital to expand the
business further.
The liability is unlimited
The owner- manager will be liable to
settle all debts outstanding.
Failing which all assets will be
ceased by court order to be sold, and
cash generated will used to pay all
outstanding creditors.
Sole Proprietorship
Disadvantages
The future development of the business
is limited.
Lot depends on the managerial capability
of the owner and physical health.
The life span of the business depends
upon the age of the owner and how
efficiently he manages the business.
He is of ill health or passes away the
business continuation is disrupted.
If he choose an heir (successor) to the
business, then the business has to be
reregistered.
Partnership