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  • Different Forms of Doing Business: Sole Prop Partnership Private Company Public Company

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    Vishal Poduri
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    The document compares different forms of business entities: 1. Sole proprietorships have a single owner and investor but limited availability of capital and higher banker's risk compared to other forms. 2. Partnerships and private companies allow between 2 to 50 owners but regulations and potential agency problems increase with additional owners. 3. Public companies can have an unlimited number of investors but are subject to extensive regulations. 4. New forms like LLPs and one person companies combine advantages of older forms to provide business flexibility.

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    3 SecD_28July2021

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    The document compares different forms of business entities: 1. Sole proprietorships have a single owner and investor but limited availability of capital and higher banker's risk compared to other forms. 2. Partnerships and private companies allow between 2 to 50 owners but regulations and potential agency problems increase with additional owners. 3. Public companies can have an unlimited number of investors but are subject to extensive regulations. 4. New forms like LLPs and one person companies combine advantages of older forms to provide business flexibility.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    11 views6 pages

    Different Forms of Doing Business: Sole Prop Partnership Private Company Public Company

    Uploaded by

    Vishal Poduri
    The document compares different forms of business entities: 1. Sole proprietorships have a single owner and investor but limited availability of capital and higher banker's risk compared to other forms. 2. Partnerships and private companies allow between 2 to 50 owners but regulations and potential agency problems increase with additional owners. 3. Public companies can have an unlimited number of investors but are subject to extensive regulations. 4. New forms like LLPs and one person companies combine advantages of older forms to provide business flexibility.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 6

    Different Forms of Doing Business

    Sole Prop Partnership Private Company Public Company

    No. of investors 1 2 to 50 2 to 200 7 to Infinite

    Availability of Capital

    Regulations applicable

    Banker’s risk

    Agency problem
    (Owner vs Mgr)

    1
    LLP One Person
    Company
    Best of the
    two worlds

    HUF Trust
    Summarizing
    Business Information into
    Financial Reports
    Blended learning

    Focal Point

    1 Business Transaction

    2 Recording for future reference Accounting


    (Journals, Ledgers, Memo)

    3 Proper presentation Financial Reporting


    (Balance sheet, P/L, Cash Flow St)

    4 Use of information by stakeholder Financial


    Statement Analysis

    33
    Blended learning

    Basic Definitions

    All entities can be divided into 5 basic categories

    Liability
    Assets

    Future probable economic Future probable economic


    benefits obligations

    Income Expense
    Revenue Stream Cost Incurred to earn the
    income

    Owner’s Equity

    Net benefit after meeting all


    the obligations
    Case: Estate of Baron Coburg
    Summarising Business Transactions

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