Basic Forms Of Business Organization

| A general partnership is comprised of a group of two or more individuals who enter into an agreement to start a business. The partners and the business are legally the same. The partners enter into an agreement called the articles of partnership and are typically equally active in the business and the business’s management, unless otherwise stated in the partnership agreement. All profits and losses are shared by the partners in a joint business venture.

-A partnership is an organizational form that contains two or more people who are able to be joined together legally in order to share the management duties and make profit from the business.

General Partnerships. Voluntary agreement under which two or more people act as co-workers of a businees profit. each partner has the rigth to participate in the companys managment and share in profits, it also has unlimited liability for any debts the company incurs.

partnership to continue, in the event a partner withdraws from the group. Similar to sole proprietorship, general partnerships tend to have a difficult time rounding up funding and resources, since most of the necessary capital comes from each partner's personal assets. This in turn may hinder longevity and growth of the organization. 4. Control In a typical general partnership, all partners will have equal rights and control over the business. It allows any partner to act on behalf of the business to make decisions and negotiation with

Limited Partnership: This partnership consists of a blend of both general and limited partners. This kind of agreement/partnership lets the general partner manage the entire operation, but they are still fully liable for debts. The limited partner only invests his/her money, and can only lose what they invested.

General Partnership: Occurs when two or more individuals get together to operate a business with the intention of making profit. Each individual is a general partner of the business and all profits and losses are shared between the partners. General partnership agreements can be a written or verbal agreement.

a general partnership. It should be noted, however, that the specific steps and requirements to start an

General partnership is formed when at least two people start a business for profit. A “statement of partnership authority” may be filed at the discretion of the partnership.

A Partnership is a business form that consists of two or more individuals. There are two types of partnerships; general and limited. General partners are liable for the full extent of debts and obligations within the business. Limited partnerships provide individuals with a limitation of responsibilities in the organization’s liability; this type of partnership is dependent upon the investment percentage. Advantages of partnerships consist of cost efficiency, shared financial responsibility, complementary skill association, and offer employees partnership incentives. Disadvantages of partnerships are joint and individual liability, disagreements between partners, and shared profits (“U.S. Small Business Administration,” 2013).

The general partnership is where all general partners manage the business and are personally liable for its debts.

After the creation of a business plan, the next step to operating a business is the selection of an appropriate business structure. Different legal forms of business ownerships affect different managerial and financial factors from the business names to the tax obligations (Gregory, n.d.). The most common forms are sole proprietorship, partnership, cooperatives, and corporations. There are different types of corporations in the business world, but the two most general corporation types are S Corporation and Limited Liability Company (LLC) (Ferrell et al., 2013). The sole proprietorship is the easiest and most basic form of business ownership. It is owned and run by one individual, which is the proprietor. The individual is entitled to all profits and is responsible for all the business’s

Sole proprietorships are simple to set up and simple to begin conducting business. However, there are several significant drawbacks to sole proprietorship. Sole proprietorship has one owner and is therefore limited in its access to capital (Cole, 2011). Without access to additional capital, a business could struggle and would be unable to grow. Another significant drawback is legal liability. Given that there is only one owner, all liability resides with the one owner (Cole, 2011). This sole legal liability puts the owner’s personal property and business property at risk. In the business case involving Mr. Picard and Ms. Crusher, sole proprietorship is not an available option due to the presence of two owners and the concern of legal liability. The Final Frontier would be not appropriate as a sole proprietorship.

A partnership is a business organization where the partners own the business together and are

Is the most common business type, where the business is operated and owned by a single individual. In this type of business, the sole proprietor provides capital, does not share profit or loss and runs the business alone. As such, the business and the owner are indistinguishable for tax and legal purposes (Dlabay, 2011). To differentiate this business from other business types, a sole proprietorship is discussed under the following characteristics.

In a general partnership, two or more persons are required to carry out the business activity. In the general partnership, the loss and profit flows through to the partners. The business is not a separate tax entity. The share of profit or loss that the partners receive report on their individual income tax returns. Generally, in the partnerships, the members enter through written