Under which business structure might Cassie risk losing ownership of her app?

In a corporation, ownership is represented by shares of stock, and shareholders own these shares. This structure allows for the potential dilution of ownership depending on how many shares are issued and to whom. If Cassie raises capital by selling shares to investors, she could risk losing a significant portion of her ownership in the app as the new shareholders would gain a claim to the company. Additionally, if a corporation faces financial difficulties, the corporate structure separates personal finances from business liability, which offers protection to owners, but it also means that decisions could be made by a board of directors that don’t necessarily align with Cassie’s interests.

In contrast, in a sole proprietorship, Cassie would maintain complete ownership and control of her app, while partnerships and limited partnerships allow partners to share ownership. However, these structures have specific operational frameworks and obligations that do not inherently dilute ownership like a corporation does.