PPT Slide
Strengths and Weaknesses of the Basic Legal forms of Business Organization
Income taxed as personal income
Can raise more funds than proprietorships
Can retain good employees
Income taxed as personal income of partners
Owners have limited liability
Ownership easily transferable
Can hire professional managers
Owner has unlimited liability
Limited fund raising powers
Difficulty to give employees long-run career opportunities
Lack of continuity when proprietor dies
Owners have unlimited liability
When a partner dies, partnership is dissolved
Difficult to liquidate or transfer partnership
Difficult to achieve large scale operations
More expensive to organize than other business forms
Subject to greater government regulation
- 1994, HarperCollins Publishers