Explain the main type of business organization: 1- Sole proprietorship. 2- Partnership. 3- corporation.
Explain the main type of business organization:
1- Sole proprietorship.
2-
3- corporation.
Sole-Proprietorship :
A business owned or run by one individual without any legal distinction between the owner and the entity is known as Sole-Proprietorship. In financial terms, it means that all the income and expenses are directed towards the owner. The disadvantage of this is that if business goes into debt, the loan amount is then acquired by private possessions of owner.
Partnership :
A business which is owned by two or more people with legal agreement of doing so is known as Partnership. In financial terms, the set of individuals in the partnership shares the management, expenses and profits. In partnership, there is no liability protection for owners. This means that if business goes into debt, the loan amount is then acquired by private possessions of all the partners.
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