Youth justice systems and approaches

Economics

Sole Proprietorship

Partnership

Corporation

Advantages

Simplest form of business to start.

The sole proprietor can keep all of the profits, 3. Self-Employment

Tax advantages from losses

easy to start this form of business.

Allows two or more people to collaborate in a team effort.

Limited Personal Liability.

Corporations are more capable of growth and expansion than other forms of business.

Corporations have an unlimited life which allows them to continue to exist even if the ownership changes.

Disadvantages

All Liabilities fall on the owner.

The life cycle of the business ends when the sole proprietor dies.

Owner may have to use their own assets to pay off the debt of the business

Responsibility for any liabilities incurred by the business is placed on the partners.

Partners are responsible for one another's actions.

Difficult to sell the interest in a partnership.

Corporations are often subject to double taxation.

2. The process of incorporating is more expensive and complicated.

3. Corporations must also maintain elaborate corporate records.

2. What are the advantages of becoming a franchisee? The main advantage of owning a franchise is that there is already a business model in place. Franchisees don't have to start from scratch. They are taught how to train employees and the product that they sell is already established.

3. Why do people start cooperatives? Cooperatives are started to distribute the profits from the sell of goods amongst a community of individuals who are members of the co-op.