Advantages and Disadvantages of the Three Forms of Business

Advantages and Disadvantages of the Three Forms of Business Sole proprietorship Ease of formation Management incentives Very easy Profit = income Partnership Easy Profit = income Corporation More difficult Ownership and control may be separate Extensive Extensive Limited to value of investment Unlimited Specialization Access to capital Liability Very limited Limited Unlimited Limited Limited Unlimited Continuity Ends with death of proprietor May end with death of a partner