Describe how each of the following differs with respect to the three common forms of business ownership: Sole

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Describe how each of the following differs with respect to the three common forms of business ownership: Sole Proprietorship, Partnership, and Incorporation. A) Decision making B) Raising money for start-up C) Distribution of profits (or losses) D) Taxation

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The table below shows the differences between the three types of businesses: Characteristics Sole Proprietorship Partnership Incorporation A) Decision making Business owner is sole decision maker. Partners will be deciding based on unanimous decision. Thru voting of the stockholders, majority vote wins. B) Raising money for start-up Infusion of money of the business owner or by applying for a loan. Partners pool their funds to raise money for the start-up. Raising money by selling shares in exchange for money. C) Distribution of profits (or losses) 100% of the profits or losses will be shouldered by the owner. Distribution of profits or losses is based on the agreement of the partners. Distribution of profits or losses is based on the number of shares owned. D) Taxation Based on the individual income tax. Individual income tax on each partners. Corporate Income Tax is used.

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Describe how each of the following differs with respect to the three common forms of business ownership: Sole Proprietorship, Partnership, and Incorporation

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Characteristics	Sole Proprietorship	Partnership	Incorporation
A) Decision making	Business owner is sole decision maker.	Partners will be deciding based on unanimous decision.	Thru voting of the stockholders, majority vote wins.
B) Raising money for start-up	Infusion of money of the business owner or by applying for a loan.	Partners pool their funds to raise money for the start-up.	Raising money by selling shares in exchange for money.
C) Distribution of profits (or losses)	100% of the profits or losses will be shouldered by the owner.	Distribution of profits or losses is based on the agreement of the partners.	Distribution of profits or losses is based on the number of shares owned.
D) Taxation	Based on the individual income tax.	Individual income tax on each partners.	Corporate Income Tax is used.