To discuss: The four main disadvantages of the
Introduction:
The Business organization is a process of organizing, planning, monitoring, and controlling of resources in an entity to attain its objectives. There are three various types of business organization. They are as follows:
- Sole proprietorship
- Partnership
- Corporation
To think critically about: The advantages of the partnership and sole proprietorship forms of business organization in contrast to the corporation.
Introduction:
The Business organization is a process of organizing, planning, monitoring, and controlling of resources in an entity to attain its objectives. There are three various types of business organization. They are as follows:
- Sole proprietorship
- Partnership
- Corporation
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EBK FUNDAMENTALS OF CORPORATE FINANCE A
- LO.1 Sylvia and Trang want to enter into business together and are unsure what type of entity to form (if any). They are concerned about the complexity of the paperwork required, the protection of personal assets from business creditors, and flexibility of sharing income and losses. Explain to Sylvia and Trang how a corporation, a partnership, or no entity at all may differ with respect to their areas of concern.arrow_forwardWhat does it mean to be a company? Instead of forming a partnership, why would the founders of the company choose to do so instead? What are the benefits and drawbacks of forming a company?arrow_forwardHow does running a company as a partnership as opposed to a corporation benefit the parties involved? What are the drawbacks of this approach?arrow_forward
- 1Give some examples of ways in which manager's goals can differ from those of shareholders. 2. From a liability point of view, what is the difference between investing in a sole proprietorship and a general partnership?arrow_forwardWhat options does a group of people have when forming a business? Why might a partnership not be the best form of business organization? What other options might they have?arrow_forward3. Explain the concept of the following Business Ownerships: Sole Proprietorship, Partnership, Corporation, and Cooperation. Describe the advantages and disadvantages of each business.arrow_forward
- Agency problems are said to be inherent in the corporate form of an organization. Why do you think this is the case?Do you think agency problems arise in a sole proprietorship or a partnership?What steps would you take to reduce agency problems in a so-called typical corporation?arrow_forward1. What is triple bottom line in under corporate social responsibility?arrow_forwardIs it possible for a person to form a joint venture with a business? What's your theory about that?arrow_forward
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENTIndividual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT