Verified Document

Proprietorships The Benefits And Drawbacks Essay

Related Topics:

As, they want to maintain operational control; but they want some kind of: division of labor, responsibilities and financial contributions. ("Incorporation") (Hernandez) This is similar to a proprietorship in that it is easy to establish and there are less regulations. However, partnerships are different, because there is stated contract that defines the percentage of ownership and liabilities for these kinds of organizations. Corporations

A corporation is considered to be a separate legal entity. As, these kinds of organizations are: responsible for their own activities, they can take on debt, enter legal agreements, own property and they are also liable for any taxes as a business. This means that the firm will pay taxes on all income that is received. At the same time, these kinds of entities can sell common stock to increase working capital and they can have large number of owners (called the shareholders). The major benefits that this kind of organization is offering includes: there are limited liabilities,...

The different drawbacks of these kinds of businesses include: they are time consuming (because of regulations); there are higher costs, more formalities to establish and double taxation for the owners. These elements are important, because they are showing how these types of firms are ideal for companies that want to become very large. ("Incorporation") (Hernandez) This is different from proprietorships and partnerships, because there are more regulations that must be followed. As the owners will have greater legal protections, while having to go through formalized procedures to: establish and maintain these kinds of firms.
Bibliography

"Incorporation." Legal Zoom, 2011. Web. 20 Oct. 2011

Hernandez, Brian. "How to Choose." Business News Daily, 2011. Web. 20 Oct. 2011.

MLA Format. http://owl.english.purdue.edu/owl/resource/747/01/

Sources used in this document:
Bibliography

"Incorporation." Legal Zoom, 2011. Web. 20 Oct. 2011 <http://www.legalzoom.com/incorporation-guide/sole-proprietor-corporation-partnership-comparison.html>

Hernandez, Brian. "How to Choose." Business News Daily, 2011. Web. 20 Oct. 2011. <http://www.businessnewsdaily.com/small-business-owners-determine-business-entity-0468/>

MLA Format. http://owl.english.purdue.edu/owl/resource/747/01/
Cite this Document:
Copy Bibliography Citation

Related Documents

Business Organizations: Sole Proprietorship, Partnership
Words: 2186 Length: 7 Document Type: Research Paper

("Definition of a Corporation") A fourth advantage of a corporation is that it is easy to raise various forms of financing. The structure of corporation allows it to be owned by large numbers of individual (shareholders). This is significant, because it means that a corporation can use the public markets to be able to raise investment capital. As a result, some corporations have the potential to raise billions of dollars

Legal Structure of Business
Words: 1242 Length: 4 Document Type: Essay

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

Business Plan This Is a Business Plan
Words: 2119 Length: 7 Document Type: Business Plan

Business Plan This is a business plan of Scarves Unlimited. The business will be a partnership business between Andy, Brandy, and Savanna. The partners of the business intend to improve business operations, and ensure there is increased productivity in the business. Therefore, this business plan will clearly illustrate how the business plans to operate, market its products and services and introduce technology in its operations. This is aimed at ensuring the

Legal Aspects of Opening a
Words: 3863 Length: 12 Document Type: Research Paper

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

Financial Management Firm Organization False. The Form
Words: 351 Length: 1 Document Type: Essay

Financial Management Firm Organization False. The form of business organization direct affects the taxation structure of the firm, particularly with regard to flow-through taxation on some forms (sole proprietorship, most partnerships) and not on others (most corporations). Firm Organization False. The partners in a regular partnership have a high degree of liability. Partnership True. Most partnerships remains fairly small due to these constraints. Proprietorship True. In a sole proprietorship, the owner holds all the capital, making it difficult

Creating New Business the Elements
Words: 1540 Length: 4 Document Type: Term Paper

By implementing safety training immediately, Joe will be complying with state laws but also reducing future risk on the job for his team. Also this can reduce his overall risk as the owner and help reduce insurance fees. Conclusion The element of change has played a far greater role than expected in the American economy. A shift will continue and not focus so much on corporate America but on smaller, independent

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now