Summary Forms of ownership

EMS

forms of ownership

- 4 types of ownership
1. sole trader

it means when one person owns a business

advantages

= it is easy to form
= you need to get a trading licence

= you can get all the profits
= you can make decisions easily and quickly

disavantages

= you have unlimited liability
= since you will work alone you wont have time for holidays
= all costs will be on you

2. partnership

when 2 - unlimited amount of own the business

advantages

= you need to have a trading licence
=people can decide in the decisin making process
= it is easy to form

disavantages

= people can have fights and disagreements
= they have unlimited liability
= there is no continuity


3. close coporation

it invlovles people between 1-10 people in the business

advantage

= you need to complete a founding statement
= members spealise in tasks they are good at
= it is easy to form
= people can make decisions
=there is limited liability

disavantage

= there is a limit of 10 members
= the size corporation is limited to the capital contribution of the members

companies