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Week 4 - example of a partnership is Michelangelo’s Pizza...

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There are many types of businesses in the United States today. The three main businesses are a proprietorship, partnership or corporation. Between these three types there are many differences as well as advantages or disadvantages between them. In a proprietorship there is usually only one main owner who makes the businesses decisions. The advantages of a proprietorship are that the income is only taxed once and it is easy to form and to dissolve. The disadvantage is that the owner is solely responsible for any debt the company incurs. An example of a proprietorship is Active Ride Shop. In a partnership there are usually two or more joint owners of the company who share the responsibilities and the profits of that company. An advantage of a partnership is that it is easy to form and it can help reduce the cost of monitoring job performance. A disadvantage is that a partnership is usually more costly than a proprietorship. An
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Unformatted text preview: example of a partnership is Michelangelo’s Pizza. Finally a corporation is usually a large company that is a legal entity and has shareholders who own shares of the company’s profit and enjoy limited liability. An advantage of a corporation is that there shareholders enjoy that limited liability and that they raise large sums of money. A disadvantage of a corporation is that the company is subject to double taxation. An example of a corporation is Target. The major percentages of businesses in the United States are proprietorships. Partnerships come in second while corporations come in last. But the funny thing is while corporations may be in last place in numbers they bring in more than 3 times more than the proprietorships and partnerships put together....
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