chapter 5 - Hanifa Ayunisa January 9 2011 Chapter 5...

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Hanifa Ayunisa January 9, 2011 Chapter 5 According to chapter 5, there are three important basic forms of business ownership. There are sole proprietorship, partnerships, and corporations. Sole proprietorship is a business that is owned, and usually managed, by one person; it is the most common form of business ownership. Sole proprietorship is the easiest kind of business for people to explore in their quest for an interesting career. However, there are some strengths and weaknesses in this form of business ownership. The strengths are ease of starting and ending the business, being own boss, pride of ownership, and no special taxes. There is also a famous quote “nothing is perfect”, so this form of business ownership has some weaknesses, such as: unlimited liability, limited financial resources, management difficulties and limited growth. However, many people do not have the money, time, or desire to run a business on their own. Therefore, they tend to have somebody else to help them running the business, and the organization is called partnership,
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