03-01_task1 (1)

Economics© ACCESS Virtual Learning 2023 Name: Evan Swain Date: School: Facilitator: 3.01 Business Types (35 Points) Part 1: Organizational Chart Define each type of business in a market economy. Then, list the advantages and disadvantages of sole proprietorships, partnerships, and corporations by completing the chart below. Sole Proprietorship Partnership Corporation Define A type of business owned and operated by a single person. A type of business owned by two or more individuals who share profits and liabilities. A type of business that is legally separate from its owners and shareholders. Advantages 1. Easy to start and operate. 2. Owner has complete control over the business. 3. Owner receives all profits. 1. Easy to start and operate. 2. Shared responsibilities. 3. Shared resources. 1. Limited liability for owners and shareholders. 2. Ability to raise large amounts of capital through stock sales. 3. Ability to continue operating even if ownership changes. Disadvantages 1. Unlimited personal liability. 2. Limited access to resources. 3. Limited ability to raise capital. 1. Unlimited personal liability. 2. Disagreements between partners can lead to conflict. 3. Limited ability to raise capital. 1. More complex and expensive to start and operate. 2. Double taxation of profits. 3. Increased government regulation. Part 2: Corporation Profits Comparison Below you have two reference resources linked to use for your analysis. Use the two links to compare and contrast the profits and advantages of the largest corporations in America. You learned in Lesson 3.01 and organized above that the greatest benefits of a corporation as a business type is 1. increased amount of capital due to stockholder investment 2. increased amount of profits.