A sole proprietorship is a business that has only one owner who is responsible for making decisions for the company. A partnership consists of two or more people who share the responsibility of managing the company. It has two special types of partnerships, such as Limited Partnership (LP), and Limited Liability Partnership (LLP). A corporation is a business that is owned by shareholders. It has one or more owners may participate as shareholders of a corporation.
- A Sole Proprietorship’s advantages
Then owner is in business for themselves, all of the profit belong to the owner, if the company make money. All of the income and expenses should be belonged to the owner, who is responsible for his/ her own company.
- A Sole Proprietorship’s disadvantages:
It has some risky, because if the company is going to bankrupt, the owner should be responsible for all things. Everything may lose.
Partnership: Two or more people share in the ownership and operation of a business.
- A Partnership’s advantages:
It’s easy to form, making decision- making easier and fewer government regulations and restrictions than corporations.
- A Partnership’s disadvantages:
If the company is going to bankrupt, each partner should be responsible for company, because partnership has unlimited liability. Mutual agency and limited life. Eg. Fogle, Silver, & Zimmerman
A corporation can be divided into two parts, such as public corporation and private corporation. Public corporation must follow IFRS, yet the private corporation can choose to follow either IFRS or ASPE. By law, the business has its own identity. Eg. Walmart Corporation
Ex：Walmart is an American multinational retailing corporation that operates as a chain of hypermarkets, discount department stores, and grocery stores. Headquartered in Bentonville, Arkansas, the company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. Walmart is the world's largest company by revenue, according to the Fortune Global 500 list in 2016, as well as the largest private employer in the world with 2.3 million employees. It is a family-owned business, as the company is controlled by the Walton family.
https://en.wikipedia.org/wiki/walmart
https://www.brainyquote.com/quotes/keywords/partnerships.html
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