Types Of Business : A Sole Proprietorship Business

1397 WordsJan 25, 20176 Pages
Today we are going to discuss the different types of businesses and the advantages and disadvantages of each type of business. A sole proprietorship business is a business that is usually owned and ran by one individual person. A sole proprietorship business has many advantages. The reason why a lot of people choose a sole proprietorship business is because they are their own boss. This type of business is the easiest business to start making it the most simple business to run. There are no legal documentation needed to start a sole proprietorship business. Since there is no need for legal documentation there is no need for legal fees. The owner retains all the earnings of the business. If the business is successful the owner can take…show more content…
General partners assume full or shared responsibility for running the business activities. Limited partners invests money in the business but doesn’t take any responsibility in managing the business or dealing with the activities of the business. Partnerships do have legal requirments but they are limited to register the name of the business and obtaining any license or permit that they may need. Lenders are more willing to loan partnerships a lot more than a sole propiertorship business. The disadvantages of a partnership is they also have unlimited liability allowing them also to become sewed by creditors. Partnerships also can have partner disagreements which can cause a business to get off the goal that they are trying to achieve. In some cases disagreements can not be resolved and partnerships have to split up. If the partners of the business split up or one of the partners want out the assets of the business become frozen until the partnering wanting out gets their share of the business. The next type of business that I am going to explain is corporation businesses. A corporation business was declared in 1819 to be qualified as a artificial person. A corporation has the right to start and operate business, the right to borrow money, and the right to be sued or sue. The owners of a corporation are the companies stockholders. The owners own share or stock that gives them part ownership of the corporation. The company has either open or closed stock. Open
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