武汉理工大学：《财务管理》课程PPT教学课件（英文版）Conclusions and Review of Financial Management

Forms of Business Organization Sole proprietorship Partnership Corporation 1-6

1-6 Forms of Business Organization Sole Proprietorship Partnership Corporation

Sole Proprietorship Advantages Ease of formation Subject to few regulations No corporate income taxes Disadvantages Limited life 1-7 Difficult to raise capital

1-7 Sole Proprietorship Advantages Ease of formation Subject to few regulations No corporate income taxes Disadvantages Limited life Difficult to raise capital Unlimited liability

Partnership Advantages Possible synergy Subject to few regulations No corporate income taxes Disadvantages Limited life 1-8 Difficult to raise capital

1-8 Partnership Advantages Possible synergy Subject to few regulations No corporate income taxes Disadvantages Limited life Difficult to raise capital Possible conflicts

Corporation Advantages Unlimited life Ease of transferring ownership Limited liability Disadvantages Double taxation 1-9 Cost of organization

1-9 Corporation Advantages Unlimited life Ease of transferring ownership Limited liability Disadvantages Double taxation Cost of organization Cost of report filing