Types of Business According to Ownership You Can Start Today – Would you want to run a business on your own, with a partner, or with more people? Weigh the odds:
Forms of Business
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)
Cooperative (association of persons)
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
* Least likely to be dissolved
* Limited liability
* More people benefit from the business
* Professional managers may be employed by the members
DISADVANTAGES
* Complicated setting-up process
* Individual stockholders may have limited influence on management
* Tendency to institutionalize a bureaucracy
* Shared control of the business
* Consensual decision making
Source: Bureau of Micro, Small and Medium Enterprise Development
Website: www.dti.gov.ph