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Pros and Cons

The document discusses the advantages and disadvantages of different business structures including sole proprietorships, partnerships, corporations, and franchises. Sole proprietorships allow for full control but the owner bears all financial risk. Partnerships share responsibility but also require agreement between owners. Corporations protect personal assets but involve more taxes and paperwork. Franchises have brand recognition but come with less freedom and higher costs.

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47 views9 pages

Pros and Cons

The document discusses the advantages and disadvantages of different business structures including sole proprietorships, partnerships, corporations, and franchises. Sole proprietorships allow for full control but the owner bears all financial risk. Partnerships share responsibility but also require agreement between owners. Corporations protect personal assets but involve more taxes and paperwork. Franchises have brand recognition but come with less freedom and higher costs.

Uploaded by

api-477427419
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Advantages of sole

proprietorship
Here is a list of some of the
advantages.

 You get to make all of the


decisions
 You don’t have to pay
corporate billing taxes
 You have more freedom with
your business
Disadvantages of sole
proprietorship

Here is a list of some of the


disadvantages:

• You have to do a lot of work


• If you die your business goes with you
• You can’t take on business debt
• Not a normal business format
Advantages of
partnership
Here is a list of some of the
advantages:

• You have someone to share


the responsibility with
• All of the blame isn’t on
you if you fail
• It is easier to attract
investors over sole
proprietorship
Disadvantages of
partnership
Here is a list of some of the
disadvantages:

• You have to agree on all of the


decisions together
• You have less freedom to do
what you want with your
company
• You have to share the
earnings with your partner.
Advantages of
corporations
Here is a list of some of the
advantages:

• Limited liability
• Your personal assets are
protected
• There is no limit to a life of a
corporation
• You can change ownership
whenever you want
Disadvantages of
corporations

Here is a list of some of the


disadvantages:

• You have to pay taxes on the income


and the shareholders have to pay
taxes on their dividends
• Excessive tax filings
• Independent management
Advantages of
franchises

Here is a list of some of the


advantages:

• You operate under a pre


established business
• Your business is already known
and liked
• Less likely to fail
• You will make more $$$
Disadvantages of
Franchises

Here is a list of some of the


disadvantages:

• High initial investment cost


• Limited freedom with the business
• Lack of privacy
• Royalty fees
I want to own a McDonalds

Reasons I want to own a McDonalds


1. Most McDonalds make great profits
2. A lot of people already like McDonalds and will eat there
3. There is a low chance of my business failing

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