Business Organizations Chapter 8 Business Organizations A business
Business Organizations Chapter 8
Business Organizations • A business organization is an establishment formed to carry on a commercial enterprise. • In other words, a business organization is a company, or firm.
Sole Proprietorship • A sole proprietorship is a business owned and managed by a single individual
Sole Proprietorship Advantages Disadvantages - - Unlimited personal liability - Limited access to resources - Lack of permanence Ease of start up Relatively few regulations Sole receiver of profit Full control Easy to discontinue
Partnerships • A partnership is a business organization owned by two or more persons who agree on a specific division of responsibilities and profits • A general partnership is one in which the members share equally in both responsibility and liability • A limited partnership is one in which only one partner is a general partner (the others contribute only money)
Partnerships Advantages Disadvantages - Ease of start up - Shared decision making and specialization - Larger pool of capital - Taxation - Unlimited liability - Potential for conflict
Corporation • A corporation is any business or firm that is a legal entity which is publicly owned and traded through stock. • A stock is a certificate of ownership in a corporation
Corporation Advantages Disadvantages -stockholders -limited liability -corporation -many resources -long life span -stockholders -loss of control -double taxation -corporation -difficulty and expense of start-up -more regulations
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