Would you want to run the business on your own, with a partner, or with more people? Weigh the odds:
1. Single Proprietorship (one party)
Advantages: Easy to set up; Decision-making left entirely to owner
Disadvantages: Demanding on owner's personal time; Growth limited by owner's financial means.
2. Partnership (at least two parties)
Advantages: Relatively easy to set up; Check and balance maintained with two parties around.
Disadvantages: Any personal rifts between partners may dissolve partnership;
Equal profit sharing despite unequal attention and time given by partners to business.
3. Corporation (at least five parties)
Advantages: Maximum flexibility for growth; Limited liability of individual shareholders; Greater room for professionalism in management; Is least likely to dissolve.
Disadvantages: Complicated setting-up process; Individual stockholders may have limited influence on management; Tendency to institutionalize a bureaucracy.
1. Single Proprietorship (one party)
Advantages: Easy to set up; Decision-making left entirely to owner
Disadvantages: Demanding on owner's personal time; Growth limited by owner's financial means.
2. Partnership (at least two parties)
Advantages: Relatively easy to set up; Check and balance maintained with two parties around.
Disadvantages: Any personal rifts between partners may dissolve partnership;
Equal profit sharing despite unequal attention and time given by partners to business.
3. Corporation (at least five parties)
Advantages: Maximum flexibility for growth; Limited liability of individual shareholders; Greater room for professionalism in management; Is least likely to dissolve.
Disadvantages: Complicated setting-up process; Individual stockholders may have limited influence on management; Tendency to institutionalize a bureaucracy.
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