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Who’s the Boss? (Types of Business Ownership)

Directions – Read the following scenarios and determine what type of business ownership it
demonstrates.
Types of Ownership
- Proprietorship -Partnership -Corporation
Scenario #1 – Roxie has put her entire life savings into her new Toy Store. If her business is
not successful she will lose everything. ______________________________
Scenario #2 – Samuel bought stock, for $15, in a movie company. When the company folded two years
later he only lost his initial investment. ______________________________
Scenario #3 – Zach is a stockholder of Burger World. ______________________________
Scenario #4 – Haley, Samantha, and Erika start a cupcake business together, each equally
investing the same amount of money. ______________________________
Scenario #5 – Ethan and Lilia own a chain of Dog Stores together. They equally share the risk
and the rewards. ______________________________
Scenario #6 – Madeline owns two pizza shops. She hires Sarah to manage the one shop. At the end of
the day all of the risk is still on Madeline. ______________________________

1 answer

Here's the analysis of each scenario based on the types of business ownership:

Scenario #1 – Roxie has put her entire life savings into her new Toy Store. If her business is not successful she will lose everything.
Ownership Type: Proprietorship

Scenario #2 – Samuel bought stock, for $15, in a movie company. When the company folded two years later he only lost his initial investment.
Ownership Type: Corporation

Scenario #3 – Zach is a stockholder of Burger World.
Ownership Type: Corporation

Scenario #4 – Haley, Samantha, and Erika start a cupcake business together, each equally investing the same amount of money.
Ownership Type: Partnership

Scenario #5 – Ethan and Lilia own a chain of Dog Stores together. They equally share the risk and the rewards.
Ownership Type: Partnership

Scenario #6 – Madeline owns two pizza shops. She hires Sarah to manage the one shop. At the end of the day, all of the risk is still on Madeline.
Ownership Type: Proprietorship