Audio: Forms Of Business Ownership

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Forms of Business Ownership

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  Forms of Business Ownership: Choosing the Right Structure Choosing the right legal structure for your business is a crucial decision that can significantly impact your operations, finances, and personal liability. Here's a breakdown of the most common forms of business ownership: Sole Proprietorship A sole proprietorship is the simplest form of business ownership. It's owned and operated by one person.  * Pros : Easy to start, complete control, tax advantages.  * Cons : Unlimited personal liability, limited access to capital, business life is tied to the owner's life. Partnership A partnership involves two or more people sharing ownership and profits. There are two main types:  * Pros: Shared financial burden, combined expertise, potential for tax advantages.  * Cons : Potential for disagreements, unlimited liability for general partners, shared profits Corporation A corporation is a legal entity separate from its owners (shareholders). It offers limited liab...
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