BUS&101 MIDTERM ESSAYS Essay One ❏Identify and describe at least three forms of business ownership Three forms of business ownership are: Sole proprietorship, partnerships, and corporations. Sole proprietorship is a business that is run and owned by one person. Partnerships are a legal form of business with two or more owners. Corporations are a legal entity with authority to act and have liability separate from its owners. ❏Identify and explain three pros and three cons for each Here are three pros to being a sole proprietor, one being your own boss- working for others simply does not have the same excitement as working for others. Another having pride of ownership- people who own and manage their own business are rightfully proud of their work. Lastly, no special taxes- all profits of sole proprietorships are taxed as the personal income of the owner, and the owner pays the normal income tax on that money. With pros comes cons, for example, overwhelming time commitment- though you may have your own hours, it's hard to own a business, manage it, train people, and have time for anything else when no one shares the burden. Limited growth- expansion is often slow. And also, limited life span- if the sole proprietor dies, is incapacitated, or retires, the business no longer exist.