¶ … Legal Terms
Sole proprietorship- In a sole proprietorship, one person owns all of the business assets and is the sole decision maker. The sole proprietor has unlimited personal liability for business debts, and all profits and losses pass through the business to the owner (Bouchoux, 2007).
General partnership- In a general partnership two or more people co-own all business assets and share decision-making power. Each partner has unlimited personal liability for business debts, and can be subject to pass-through taxation (Bouchoux, 2007).
Limited partnership- In a limited partnership one or more general partners have unlimited personal liability for business debs and obligations, but limited partners do not manage or control the enterprise and are only liable up to the amount of their investment in the company. Limited partnerships must be created according to state laws (Bouchoux, 2007).
Registered Limited Liability Partnership- Partners in this type of partnership are not liable for the torts or misconduct of their partners. It combines features of a partnership and a corporation and must be established according to applicable state laws (Bouchoux, 2007).
Limited Liability Company- A registered limited liability company combines the features of a partnership and a corporation. Owners have limited liability; it has pass-through taxation, and must be established in compliance with applicable state statutes (Bouchoux, 2007).
Business corporation- A business corporation is a for-profit entity created by state law, and it is a fictional person that may own property, sue and be sued, and is subject to taxation. Shareholders own stock in the company, and their liability is limited to the share of the stock that they own (Bouchoux, 2007).
Professional corporation- A professional corporation refers to a corporation formed by professionals like doctors, lawyers, accountants, and engineers. While it may provide them with some of the benefits of a business corporation, the important difference is that these individuals remain personally liable for their own negligence and employee negligence (Bouchoux, 2007).
S Corporation- S corporations are small business corporations that are exempt from double taxation because income is subject to pass-through taxation. S corporations must comply with IRS regulations, cannot have more than 100 shareholders, and all shareholders must agree to S. status (Bouchoux, 2007).
Close corporation- A close corporation is a corporation owned by a limited number of individuals, usually...
Sole Proprietorship Before Referencing Family business structures In businesses that involve numerous members of the same family, the preferred business choice of conduct is the partnership. What advantages may occur for the family members by conducting business in this form? One of the advantages of constructing a joint proprietorship or partnership for a family business is that unlike a sole proprietorship, liability is divided equally between all family members.In other words, if the
Legal Structure of McDonald's Corporation There are many different categories of business in the world today. McDonald's brand franchisees operate as part of a corporation. The company, comprised in part of restaurants run by independent entrepreneurs, is currently considered one of the worlds most successful and largest franchising companies every created. Seventy percent of McDonald's restaurants are owned and operated by independent owners. This corporate business structure has resulted in substantial opportunities
Legal Structure of Business For a McDonalds franchisee, there are three options. The franchise can be operated as a sole proprietorship, a partnership, or a corporation. The real issue is not that there are options, but which option should be chosen. It is not always possible to make that determination easily, since there are many factors that have to be considered in each choice. A sole proprietorship is operated by one
Partnerships demand that all partners (both general and limited partners) be on the same page financially and within the scope of the business operations. They require shared a goal and vision for the entity, and a mutual understanding of each owner's role and the parameters for exerting control. Perpetual lines of communication must be available for all parties in response to changing dynamics and the occurrence of unforeseen events. This
Business Types L. Jones Sole Proprietorships, Corporations, and Partnerships: Just what are they? One of the first decisions any individual or group of individuals must consider when starting or joining a business, is the legal form the entity will take. In the United States, as in many other countries around the world, the three main forms of business structures are the sole proprietorship, the corporation, and the partnership. Further, each type carries with it
Business Structures Corporation business structures Preference of Corporation Business Structure Over Other Known Structures In this paper, we will choose the corporation business structure as an ideal choice for the firm McDonalds in order to carry out its operations. We will define the merits which a multinational firm like McDonalds can take advantage of if because of this structure, also we will have an in-depth look on other structures such as sole proprietorship
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