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Unformatted text preview: Types of ownership- Ch. 5 Basic forms of ownership include sole propertiership [owned and managed by one person] ( 72%), partnership [legal form of business with two or more owners] and corporation [separate legal entity] (20%). Advantages of sole trader include ease of start and end, freedom, legacy, retain profit, no special taxes apart from income. Disadvantages include unlimited liability (business and individual are one legal entity so responsibility of all business debts for the owner), limited resources, management difficulty, time commitment, limited growth/life span, few fringe benefits (healthcare). Partnership includes:- General (all owners share in operations and in assuming liability for debts)- Limited (One or more general partner who runs the business and has unlimited liability and one or more limited partners who do not have liability beyond what they have invested)- Master limited (traded publically like a corporation but taxed as partnership i.e. no corporate tax only personal)- Limited liability partnership (limits partners risk of losing personal assets to only their own acts and omissions and to the omissions of people under their supervision)....
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- Spring '11