The Advantages and Disadvantages of Various Types of Business Organization
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|Form of Business|
- Easy to Organize
- Simple to Control
- Offers freedom of operation.
- Not subject to much government regulation
- Difficult to acquire funds for expansion
- Lacks Permanence
- Subject to unlimited liability.
- Makes owner perform all management functions
- Easy to organize.
- Makes greater specialization of management possible
- Pooling of funds
- Little gov't regulation
- Prone to disagreements by division of ownership
- Ends automatically with death or withdrawal of one partner
- Unlimited Liability
- Limited financial resources
- Well capitalized
- Limited liability
- Stable and permanent
- Permits specialization in management
- Lots of gov't regulation
- Heavy taxation and organization costs
- Double taxation of income and dividends
- Separates ownership from control
This page was last modified Wednesday, January 29, 1997.