Basic Forms Of Business Organization - 1356 Words

Three basic forms of business organization are sole proprietorship, partnership, and corporation. Sole proprietorship is the simplest form of business organization in which there is only one owner (Cheeseman, 2015, p. 570). Single person is responsible for all debts, liabilities, and obligations, as well as unlimited liability for business operations. If the owner is unsuccessful and acquires debt, creditors can pursue legal action and acquire access to personal bank accounts, real estate, and other assets by the court order to repay person’s debt obligations. Owners of sole proprietorships cannot raise capital by selling shares that represent stakeholder interest in the business. The owner reports all income and expenses in personal tax return. The business terminates upon withdrawal or an owner’s death. The owner can sell the business and by doing so, will lose the ownership. Advantages of sole proprietorship include freedom of decisions, tax breaks, ease to start, ow nership of all profits, being taxed once as a personal income of the owner, and lack of government compliance. Disadvantages of sole proprietorship include unlimited liability, very limited sources of production, and difficulty to raise capital. According to Cheeseman (2015), general partnership is an association of two or more persons to carry on as co-owners of a business for profit (p. 572). The rights and duties of partners are established in the partnership agreement and by law such as UniformShow MoreRelatedVarious Forms of Organizations Essay1501 Words   |  7 PagesYOU DECIDE PAPER 2 Part I:   Discuss the various forms of organization that are available to Penelope, Mark and John The various forms of organization available to Penelope, Mark and John are: GENERAL PARTNERSHIPS: A general partnership is a business organization formed when 2 or more individuals or entities form a business for profit. All partners share in the management and in the profits and decide on matters of ordinary business operations by majority of the partners or by percentage ownershipRead MoreThe Current Scenario of Setting Up a Business1375 Words   |  6 PagesIntroduction The Current Scenario The government of the state has allocated the funds for setting up the small business to promote the local investments and for the promotion of domestic products. The theme of the funds allocation is also to eradicate the overspills of globalization that are inhibiting the private investors to invest in the national economy. This fund allocation by the government will also instill a new sense of entrepreneurial activities at small sale and later on the economyRead MoreCase Study : Employee Skills Development1270 Words   |  6 Pages1. Customer focus Client is the key for any business and so in the modern business world the client eventually decides the level of value and quality for a specific business. Regardless of what an association does to encourage quality integration, preparing workers, incorporating quality into the configuration process, redesigning functions and processes, or purchasing new apparatuses, ultimately it is the client who figures out if the endeavors were advantageous (Evans Lindsay., 2014). 2. EmployeeRead MoreStakeholders, Categories Responsibilities of Organizations1723 Words   |  7 PagesResponsibilities of Organizations 1. Describe the basic features that distinguish the four basic forms of business ownership: sole proprietorships, general partnerships, C corporations, and limited liability companies. Ownership of C corporation is represented by shares of the stock, or shareholders, it is the most common type of the business, where ownership to the shareholders offers a limited liability to all its owners. Limited liability companies are those companies who have the form of the partnershipRead MoreWhy Do Business Exist? Review1304 Words   |  6 Pagesâ€Å"Why does business exist? â€Å" is a question that people may easily miss, because business has been so engaged in social life. However, it is still an issue that needs everyone, especially business people to deeply explore. From my point of view, business organizations exist in order to meet the needs of our daily life. Business organizations have been everywhere in our lives. When people need food, they go to supermarkets to choose what they would like to eat. This is the business activity betweenRead MoreFour Basic Financial Statements977 Words   |  4 PagesBasic Financial Statements Accountants, business owners, investors, creditors and employees use four basic financial statements of an organization to determine the financial well-being and future earnings potential of that organization. Financial statements are a key tool in seeing and understanding the past, present and future condition of an organization. What are these financial statements and what do they mean to the reader? Do the financial statements mean something completely different toRead MoreBusiness Management And The Future Business Model1698 Words   |  7 Pagesactivity understand that when using the correct scientific approach to the organization of the production process can be achieved the highest productivity. A number of key issues arise from the statement. For instance, entrepreneurship despite its relatively short period of time has passed a long way of evolution from a rather banal management practices to modern and innovative technologies and methods of business management. Business m anagement can be considered a system of economic analysis of the companyRead MoreBusiness Essay Topic: Forms of Business Organizations930 Words   |  4 PagesBusiness Essay Topic: Forms of Business Organizations It is important that the business owner seriously considers the different forms of business organization — types such as sole proprietorship, partnership, and corporation. Which organizational form is most appropriate can be influenced by tax issues, legal issues, financial concerns, and personal concerns. This essay explains the general impression of business organizations. A Sole Proprietorship, also known as the sole trader or simplyRead MoreInterview And Reflection Assignment On Innovation1177 Words   |  5 Pagesworkshops. Indeed, innovation is a demanding undertaking. For the accomplishment of an organization it requires repeatable and thorough arrangement of development. Inventiveness and thoughts are fundamental elements of innovation. The seeds of innovation are given by people, however innovation is a collaboration that transforms thoughts into reality and conveys unmistakable results. (Elliott, 2014) Organizations today confront a brutal final offer: Innovate or fade away. Senior administrators overRead MoreProfessional Communication1467 Words   |  6 PagesContents Page * Introduction 1 * Basic Communication 1 * Classification of Communication 1 * Objectives and purposes of Communications 1 * Scope of Communication in any functional Organization 2 * Different mediums of Communication 2 * Modes of Communication 2 * Barriers to Communication 3 * Principles of Effective Communication 3 * Business Correspondence Letters 3 * Enquiries, Quotations, Complaints