Types of business according to ownership

Single Proprietorship
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

Partnership (at least two parties)
Advantages
• Relatively easy to set up
• Check and balance maintained with two owners

Disadvantages
• Partnership may be endangered with conflicts between partners
• A decision made by one partner is binding on all other partners
• Generally, liability for debts incurred is unlimited

Corporation (at least five parties)

Advantages
• You share the risks and losses with the other partners
• Maximum flexibility for growth
• Limited liability of individual shareholders
• Greater room for professionalism in management

Disadvatages
• Complicated setting-up process
• Individual stockholders may have limited influence on management
• Tendency to institutionalize a bureaucracy

Cooperative (association of persons)

Advantages
• Least likely to be dissolved
• Limited liability
• More people benefit from the business
• Professional managers may be employed by the members

Disadvantages
• Shared control of the business
• Consensual decision making

Tyeps of business according to ownership