Forms Of Business Essay

1565 words - 7 pages

Owning a business is a can be very exhilarating experience. It can be culmination of a life long dream or maybe you have worked in an industry where you have a plethora of experience. You feel that instead of letting a company benefit from all of your expertise,why not be your own boss. Not to mention the potential of having an extremely profitable and successful business to boot. While being your own boss has a vast amount of advantages it also comes with an equal amount of disadvantages. In this paper and the Memorandum to follow I will be discussing the 6 different forms of business organizations as well as the advantages and disadvantages of each form of business . I will be discussing ...view middle of the document...

Income Taxes: Income tax is filed the same way as they file taxes their personal taxes since the business and the business owner are the same.
Longevity and Continuity: the sole proprietorship lasts as long the owner lasts. Once the business owner dies they cannot leave the business to any surviving family members.The business owner also cannot sell the business to anyone interested in owning his business. The business owner is allowed to sell anything within the business, such as client lists or any unsold goods. Longevity of the business is also affected by the amount of money a business owner has access to via loans or their own savings. In order to obtain a loan the owner would have to have a stellar credit rating since the loan that they obtain for the business is a personal loan. One advantage of not being able to pass on a business after an owner dies is that it can avoid any family discourse by one family member being chosen to carry on the business versus another family member .
Control: Control over a sole proprietorship is the owners and the owners alone. The owner does not have to answer to partners,a board of directors or shareholders. Any decision made is the owners and the owners alone. The disadvantage is, the consequences of making a bad decision is the owners alone.
Profit Retention: Profit retention in a sole proprietorship is limitless. The business could make the owner very wealthy and enhance the lives of everyone around him. The disadvantage is again the limitless liability.The amount of profit a owner makes can also be equal to the amount of debt that an owner has incurred.
Location: The location of a business can be anywhere. As long as the business owners has all required permits and licensing needed to run a legal business. The business owner can also open another branch in another state. If a business owner does open a business in another state then they will have to make sure that they are following the rules of that state. If for example the type of business that the owner opened in the other state is governed by an agency that requires that the business be audited every year or every three years. The business owner would be solely responsible for keeping accurate records and preparing for an audit.
Convenience or burden (Compliance): The sole proprietorship form of business is the easiest form of business to set up,but it is also the form of business with the most disadvantages; The business cannot be passed on to another person,the owner also cannot sell the business to another person only items used for the business maybe sold or given away.

General Partnership

A general partnership is a business with 2 or more people. It is similar in make up with a sole proprietor business,in that the business and the partners are one and the same. It is also an informal set up,but can also be set up formally with a written agreement or contract.

Liability: The liability for a general partnership is similar to a sole...

Find Another Essay On Forms of business

Every possible forms of business with advantages and disadvantages - Business Law - Assignment

550 words - 3 pages Sole proprietor Partnership Corporation Cooperative Constitution -personal name or business name (art. 17-20 LPLE) -name search if not using personal name -registration voluntary if using personal name of proprietor - Initial declaration (REQ) -permits -personal name or business name (art. 17-20 LPLE) -at least 2 associates -Name search - initial declaration (REQ) (art. 2189-2190 C.c.Q) -permits - tax numbers -contract (2186 C.c.Q.) -personal

Comparing Forms of Illustration Essay

638 words - 3 pages There are several areas we can explore in regards to specialization in illustration. These areas include fashion, advertising, technical, editorial, and medical forms. Although each of these forms has their own unique characteristics and attributes, the two forms that I am most interested in are advertising and editorial. For some time in my life I used to believe that these two forms of illustration generally meant the same thing. I was

Forms of Industrial Organization

1191 words - 5 pages Forms of Industrial OrganizationIn the history of mercantilism, all firms have acted in the self interest of the organization to protect their market share, unique products, and to help deny the entry of competitors into their space. Over the years many names have been given to the types of business that evolved out of the protective measures firms took to ensure their survival. Of these, our team has chosen three types of business structures to

Business Forms: Proprietorships, Partnerships, and Corporations

1684 words - 7 pages factors vary greatly depending upon which form is selected. In order to choose the most suitable form for any business venture a person must first understand the key differences and characteristics of each business structure.Throughout the years a number of different business structures have been developed which have been designed to meet the wide range of needs of businesses and business owners. Although several other business forms exist, the

Business Forms

713 words - 3 pages Business Structure Within the business community there are three primary types of business structures; Sole proprietorship, Partnership, and Corporation. Within each, there are sub-structures but this paper will primarily address the primary types. A sole proprietorship is a business that is owned by a single person. A partnership is just what it states, a partnership between two or more individuals, while a corporation is a business that for a

Forms of Society, Utopias and Capitalism

1291 words - 5 pages Society is based upon human nature to grow and succeed. Two forms of society that can meet the demands of human nature are utopias and capitalism. Both in there own way allow for some period of growth for a society. Different forms of these models exist but neither in its pure form is visible toady in any nation.In a capitalist society, the general public controls the economy. It allows people to create business and money can flow free between

Strikes And Alternative Forms Of Coping

1639 words - 7 pages Strikes and Alternative Forms of Coping      Are strikes the most beneficial way of resolving labour - management conflict? Or are alternative forms of coping more beneficial?. Throughout this paper I will attempt to answer these questions by, first giving a description of each of these forms of coping. Then I will examine the effects, both positive and negative, that each of these forms of coping has on the

The Different Forms of Psychometric Tests

1896 words - 8 pages The Different Forms of Psychometric Tests Describe the different forms of Psychometric tests commonly used by employers to assist in employee selection and comment on the advantages and disadvantages of their use. Since the beginning of civilization, employers have testing prospective workers in order to select suitable candidates. Original tests would have been a rigidly controlled standardized system of

Renewable Forms of Energy: Wind Energy

1828 words - 7 pages Renewable forms of energy are becoming more and more necessary for a sustainable future. Wind energy is a form of energy that is becoming more and more popular, and it offers a way for people to harness energy from something natural to create electricity. Wind energy in addition to other sustainable forms of creating energy are going to start taking the place of fossil fuels as people realize the true benefits of using them. There are many

Three Forms of Irony in Shakespeare's Macbeth

2854 words - 11 pages   Macbeth, is a story of a man who's ambitions have brought him to commit treason and murder. Visions of power grew within his head until his thirst for power causes him to lose that very source of his ambition to the blade of Macduff's sword. It is the ironic and symbolic elements such as this in the play which contribute to much of the acceptance the work has enjoyed for centuries. Three forms of irony may be found in the play, Macbeth

Title : Describe Potential Forms Of Discrimination In Businesses

4335 words - 17 pages having an equal opportunities policy is that staff will be able to work under a better environment, be more motivated, work more efficiently as the do not have to worry about being discriminated and if they are they can do something about it.Relevance To SituationAn equal opportunities policy is relevant to the situation as a business should be free from any possible forms of discrimination, if this is not done properly then the business will

Similar Essays

Legal Forms Of Business Essay

950 words - 4 pages should choose. As a legal form can have significant implications for your personal risk in the business as well as your potential for financial returns (Page 6 of 17 - How to Incorporate | Inc.com. (n.d.). Retrieved from http://www.inc.com/how-to-incorporate/130). The three different types of legal business forms are sole proprietorship, partnership and corporation. All of these have their advantages and disadvantages. Asking those questions

Forms Of Business Organization Essay

788 words - 3 pages From a legal point of view, there are four types of businesses:1. Sole proprietorships;2. Partnerships;3. Corporations; and4. Co-operatives.A brief description of each type is followed by a summary of their advantages and disadvantages. For specific information on how or where to register or incorporate a business, contact your local CBSC.Sole ProprietorshipsThis is the simplest way to set up a business. A sole proprietor is fully responsible

Various Forms Of Business Alliance Essay

1566 words - 6 pages What Is an Alliance? (Group 8) NarumolTechapasoranan ID: 4980394 SaranyaThakral ID: 4980159 ZeaChansukree ID: 4980353 NatchaTharawongthawat ID: 4980044What is Alliance? ("Building, Leading and Managing Strategis Alliance", Kuglin and Hook)An alliance is business agreement and relationship with two or more firms interfacing with executives of top global or European companiesAs a role of global alliance partner, they should act asWorking

3 Main Forms Of Business Organization Esrytruytjikytj Fgjetgh

1091 words - 5 pages Sole Proprietorship A sole proprietorship is the simplest form of business. It is an unincorporated business owned by one individual. Going into business as a sole proprietor is easy—one merely begins business operations. However, even the smallest businesses normally must be licensed by a governmental unit. The proprietorship has three important advantages: (1) It is easily and inexpensively formed, (2) it is subject to few government