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The Impact of e
The Impact of e
ENTERPRENEURSHIP DEVELOPMENT
EED421
SCHOOL OF ENGINEERING
BY
HARUNA SALEH
STREAM A
HND2
18/128179
1. Sole proprietorship
2.Limited liability
3.partnership
4.corporations
1. SOLE PROPRIETORSHIP
A sole proprietorship type of business enterprise has a well-defined business structure. This type of
business enterprise is encouraged where business personal liability is not a major concern. From a legal
perspective, the owner of the business and the proprietorship are one and the same.
It’s Advantages
1. The sole proprietorship is the easiest business enterprise to set up. It doesn’t require any
documentation.
3. The business owner takes total control of the business and finalized all the decisions.
It’s Disadvantages
2. A sole proprietorship cannot receive capital from an investor outside his business.
PARTNERSHIPS
The partnership forms of business enterprises is another type of business enterprise that opens to an
entrepreneur to form his business structure. A partnership is another sole proprietorship
enterprise that gives room for the business to house two or more owner at a time.
It’s Advantages
1. A partnership deed is very easy to form.
2. It housed groups of entrepreneurs with different skills and talents to bear the onus of running the
business.
3. If the deed so agrees, a partnership could keep thriving well, even if one of the partners passes away.
It’s Disadvantages
2. There’s usually a conflict of interest in the partnership deed. This could end up being
management conflicts.
3. Although the partners share the profit realize yet some may feel they are not compensated
LIMITED LIABILITY
Another forms of business enterprises if you are actually concerned about the unlimited liability
that will be open to your business and can’t risk any of your assets in a lawsuit, then the better
It’s Advantages
1. The proprietors have limited liability. Their personal assets are shielded from the company debt and
protected from judgments.
It’s Disadvantages
1. The legal fee and accounting costs are costly compared to proprietorships.
the government.
CORPORATION
Corporations type of business enterprise has the right to contract, buy, and transact property. It can sue
and also be sued by other parties.
It’s Advantages
1. Corporations attract skillful and talented employees.
It’s Disadvantages
1. It’s the most difficult business structure and needs the service of a lawyer, to begin with.