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    Forms of Business Organization

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    Terrance Mendoza
    This document discusses three main forms of business organization: sole proprietorships, partnerships, and corporations. Sole proprietorships are owned by a single person with full control and ownership but also unlimited liability. Partnerships involve two or more people contributing capital or services and sharing profits and losses, providing additional management and capital but also unlimited liability. Corporations are legal entities separate from their owners, providing limited liability and easier ownership transfers but more regulations and costs.

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    Forms of Business Organization

    Uploaded by

    Terrance Mendoza
    4 views2 pages
    This document discusses three main forms of business organization: sole proprietorships, partnerships, and corporations. Sole proprietorships are owned by a single person with full control and ownership but also unlimited liability. Partnerships involve two or more people contributing capital or services and sharing profits and losses, providing additional management and capital but also unlimited liability. Corporations are legal entities separate from their owners, providing limited liability and easier ownership transfers but more regulations and costs.

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    This document discusses three main forms of business organization: sole proprietorships, partnerships, and corporations. Sole proprietorships are owned by a single person with full control and ownership but also unlimited liability. Partnerships involve two or more people contributing capital or services and sharing profits and losses, providing additional management and capital but also unlimited liability. Corporations are legal entities separate from their owners, providing limited liability and easier ownership transfers but more regulations and costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    4 views2 pages

    Forms of Business Organization

    Uploaded by

    Terrance Mendoza
    This document discusses three main forms of business organization: sole proprietorships, partnerships, and corporations. Sole proprietorships are owned by a single person with full control and ownership but also unlimited liability. Partnerships involve two or more people contributing capital or services and sharing profits and losses, providing additional management and capital but also unlimited liability. Corporations are legal entities separate from their owners, providing limited liability and easier ownership transfers but more regulations and costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Forms of Business Organization

    Based on ownership

    Sole Proprietorship

    - Owned by a single person who has complete control over business decisions.

    Advantages:

     Ease of entry and exit

     Full of ownership and control

     Tax savings

     Few governments regulations

    Disadvantages:

     Unlimited liability

     Limitation in raising capital

     Lack of continuity

    Partnership

    - Two or more persons agree to contribute capital or services to the business and divide the

    profit or losses.

    Advantages:

     Ease of formation

     Additional sources of capital

     Management base
     Tax implication

    Disadvantages:

     Unlimited liability

     Limitation in raising capital

     Lack of continuity

     Difficulty in transferring ownership

    Corporation

    - Created by law and a legal entity separate from its owners.

    Advantages:

     Limited Liability

     Unlimited Life

     Ease in transforming ownership

     Ability to raise capital

    Disadvantages:

     Time and cost formation

     Regulation

     Taxes

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