Different Types of Businesses

Sole proprietorships are the most common type of business in the U.S. They are most commonly chosen because they are the easiest type of business to set up and give the sole owner of the company complete control of the company. There are many benefits to a sole proprietorship in regards to control, profit retention, and convenience.

The type of business I would start would be for family or friends gatherings. This business would be place people come to eat and social, a nice, warm evening.

If you start your own business there are many benefits but if you do not know what you are doing, you will fail. You must have a motif, a passion and be willing to sacrifice in order to do what you have to do. Having a business has many benefits like having the ability to fluctuate your hours, building relationships, sharing your knowledge or products. But managing a business is not easy it takes a lot of hard work, dedication, and consistency. A business could make millions one year then be bankrupt the next because the economy is not always the same. You must be able to manage your money well because you must have capital to buy inventory whenever needed, while maintaining a budget to support your family, and to put money away for retirement. Because you could have one really good month but then next month could have no consumers. So your business must be your

SOLE PROPRIETORSHIP: Has only one owner. Easy to start up. Some of the advantages are: owners may do whatever they want to with the business and if they want to go on vacation they can. One of the disadvantages they cannot bring in another person to help run the business. This business form is particularly common.

LONGEVITY- A C-corporation life is potentially unlimited. The C-corp company could exist if it can continue to make a profit and cover all of the debt. If a shareholder dies or leaves the company it will not automatically lead to the dissolving of the business. The shareholders stakes are transferred to another party.

* The control of the corporation is managed by an elected board of directors. The officers in the company normally have to be approved by the board of directors before they are offered a position to lead the company.

A1a: The Sole Proprietorship is the most common business form in the U.S. It offers the advantages of no-cost, easy startup, and full owner/operator autonomy with regard to business decisions.

* The type of business I would start would be for family or friends gatherings. This business would be place people come to eat and social, a nice, warm environment.

Anyone can open a business as an individual or with more than one owner. However there are various forms of business documents that would have to be filed in order to establish the company. These individuals depending on how many people owning the business will have to distinguish the type of forms to file, which are sole proprietorship, partnerships or a corporation organizational structure. When an individual or group decides on the type of business their wanting to establish, all of theses documents do have some strengths and weakness. For example, with sole proprietorship there could only be one person owning the company. To file the documents is every easy to set up that can be done through their local courthouse. There are few government

Ronald J. Ebert & Ricky W. Griffin, (2011). Business Essentials. 8th ed. New Jersey: Pearson. Pg 116

Business models have a huge impact on how an organizations operate. It is crucial that an organization chose a business model before inception in order to succeed. Basically, business models have become the new basis of competition, replacing product features and benefits as the playing field on which companies emerge as dominant or laggards (Plantes, 2013).

The advantages to the sole proprietorship are single control over the business and its decisions, easy to start up, less regulations and paperwork burden that the other types of business. The disadvantages are unlimited liability for their company debts and actions. The law does not recognize any distinctions between the owner’s business assets and personal assets. Banks are very skeptical about lending to these types business because there is only one person to hold liable for repaying the debt.

In order for an informed decision to be made in regards to appropriate business structure for any business it is necessary to understand each business structure separately and any attempt to understand business structure must consider the C-corporation as a baseline against which to compare subsequent business structures. A C-corporation is a business organized as a separate entity from the owner or owners of the business that requires the observation of certain formalities. In Texas these formalities include adopting bylaws, maintaining a record of accounts, issuance of stock, recording the issuance and transference of stock, recording minutes of board of director and shareholder meetings, as well as maintaining a record of current and past shareholders (Tex. BOC § 21). It is important to remember that corporate formalities will require time and expense to maintain and every attempt should be made to comply with these requirements to protect the liability limitation of the corporation’s shareholders, officers, and owners.

Coca Cola is a soft fizzy drink sold in every store throughout the world. It is produced by The Coca Cola Company of Atlanta in Georgia, and is often called as Coke.

Remember, when you want to start a potential business, you need to choose an opportunity that activates your strongest skills. The idea should also engage your major areas of interest.