Small Business and Ownership

Name ______Date______

Guided Notes

1. Small businesses are ______businesses with fewer than ______employees.

Types of Ownership Type of Ownerships Characteristics Examples

2. ______is owned by one person, is the easiest type of business to own and is the ______. Examples are: ______

Sole Proprietorship Advantages Disadvantages

3. A ______is a legal association of two or more people as co-owners of a business for profit.

4. Two basic types of partnerships are:

a. ______- which is where all partners are considered ______by law, and all are liable for the business’s debts. b. ______- which is where one or more persons act as general partners who run the business, while the remaining partners are ______investors (that is, they are not involved in managing the business). Name ______Date______

Partnerships Advantages Disadvantages

5. A ______is a legal entity with the power to own property and conduct business.

6. Characteristics of corporations include:

a. ______

b. ______

c. ______

d. ______

Corporations Advantages Disadvantages

7. Types of corporations:

a. ______

 Same as corporation except federal income taxes Name ______Date______

 Owners receive tax advantages of a partnership while raising money through the sale of stocks

b. ______

 Tax advantage of partnership with personal liability protection of a corporation

c. ______

 Partially or wholly owned by another corporations known as ______

8. A ______is right granted to an individual or group to market a company's goods or services within a certain territory or location.

Types of Franchises Type of Franchises Characteristics Examples Product franchise

Manufacturing franchise

Business-format franchise

Franchises Advantages Disadvantages