business. The advantage of this approach is that the owner has complete control over the business and its profits. In addition, the owner in a sole proprietorship has more flexibility and freedom than in the other structures (Martin, 1988, p. 34). However, as noted by Max Fallek, a disadvantage in a sole proprietorship is that the owner faces "unlimited personal liability if the business goes belly-up or if threatened by a substantial lawsuit" (Fallek, 1989, pp. 6-33). Another possible disadvantage of this structure is that it places all of the responsibility of the business on the shoulders of one person. Thus, if the owner dies or quits, the entire business generally comes to an end.
In a partnership, two or more partners share the control of the company. In many cases the partners are equal; however, in some small businesses one of the partners will be designated as a "managing partner" and will thus be given more control over the organization than the others (Berle, 1989, p. 42). The partnership is very similar to the sole proprietorsh
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