for Activity Sheet 2-3 Teacher’s Suggested Answer Key CRITERIA 1. 2. 3. 4. 5. ALTERNATIVES Cost & Ease Ability to Ease of Ability to Owner’s Of Startup Liability Raise Transferring Grow Capital Ownership Sole + - - - - 100% Liable Most Difficult, have Difficult, one Proprietorship Very Easy for own difficult; to sell the owner can Little Cost actions have to rely entire only do so Just Do It on savings, business much friends, etc. + - - - +/- Partnership Still easy, but 100% liable A little A little easier, Easier with need for own easier, can can sell one several partnership action and take in new owners partner’s agreement actions of partner ownership partner who contributes - + + + + + + + Corporation Most Corporation Easiest of Very easy, Easiest of difficult, need is liable for all, just sell just sell stock all, just hire attorney to own actions, stock to to transfer more set up stockholder raise ownership workers corporation, can only lose financial issue stock stock capital ©EconomicsAmerica in : ENTREPRENEURS IN , High School Lesson 5 Business Focus: Proprietorships and Partnerships
Teacher’s Suggested Answer Key for Activity Sheet 2-3 CRITERIA ALTERNATIVES 1. Cost & Ease Of Startup 2. Owner’s Liability 3. Ability to Raise Capital 4. Ease of Transferring Ownership 5. Ability to Grow Sole Proprietorship + Very Easy Little Cost Just Do It - 100% Liable for own actions - Most difficult; have to rely on savings, friends, etc. - Difficult, have to sell the entire business - Difficult, one owner can only do so much Partnership + Still easy, but need partnership agreement - 100% liable for own action and actions of partner - A little easier, can take in new partner who contributes - A little easier, can sell one partner’s ownership +/- Easier with several owners Corporation - Most difficult, need attorney to set up corporation, issue stock + + Corporation is liable for own actions, stockholder can only lose stock + + Easiest of all, just sell stock to raise financial capital + Very easy, just sell stock to transfer ownership + + Easiest of all, just hire more workers ©EconomicsAmerica in : ENTREPRENEURS IN , High School Lesson 5 Business Focus: Proprietorships and Partnerships
5_Lesson%202%20Business%20Organization_2014.docx