Types of Business Ownership - 1072 Words

The sole proprietorship is the simplest form of business organization. A sole proprietorship is a business that is owned by an individual who is solely responsible for all aspects of the business. The owner is personally responsible for all debts of the business, even in excess of the amount invested. The business and its owner are thus considered the same entity. The advantages of a sole proprietorship include: a. Low start up costs, as legal and filing fees are at a minimum. However, many states and cities require a filing with county clerk. b. Greatest freedom from regulation and paperwork. c. Owner is in direct control, with no interference from other owners. d. Taxes may be lower than for regular corporations. The†¦show more content†¦If the business fails or loses a lawsuit, the general creditors cannot attach the owners’ homes, cars and other personal property. Limited liability is the one major reason so many businesses are incorporated. b. Capital can be raised more easily than under other forms of ownership. This does not mean, however, that a new corporation can sell shares of stock easily. The sale of stock is highly regulated by both federal and state governments, and obtaining bank loans for a new business may be no easier for a new corporation than for a partnership or proprietorship. c. Ownership in a corporation is more easily transferable, this includes transferring shares to family members as gifts or otherwise, as well as selling your interest to some other person. However, in many small corporations it is advisable to put restrictions on transfer of shares, especially if the persons owning and working in the business must be able to work closely together. This is generally accomplished by stockholder agreements. The stockholder’s agreement is an agreement between a shareholder and the corporation. It may state, that the shareholder may not sell his shares for a specific period of time after acquiring them or that the shareholder must, under certain conditions, sell the shares back to the corporation. d. Since the corporation is an independent legal entity, it has a life of its own, or a continuous existence. It does not cease simply because one of the owners dies orShow MoreRelatedTypes Of Business Ownership And Ownership Essay1327 Words   |  6 Pages Types of Business Ownership Name Institutional Affiliation â€Æ' Business Ownership Introduction Business ownership refers to having control over a business enterprise and exercising this power by dictating its operations, functioning, and management. Ownership can be acquired either through franchising or purchasing an existing business. There are three types of business ownership, namely sole proprietorship, corporation, and partnership. A single entrepreneur can own several businesses underRead MoreTypes of Business Ownership1074 Words   |  5 Pagesgoverned by special laws. A proprietorship is a type of business entity which legally has no separate existence from its owner. Hence, the limitations of liability enjoyed by a corporation and limited liability partnerships do not apply to sole proprietors. All debts of the business are debts of the owner. The single proprietor has unlimited liability since creditors of his business may proceed not only against the assets and properties of his business but also after his own personal assets and propertiesRead MoreBusiness Types of Ownership993 Words   |  4 PagesBusiness Types of Ownership Before starting any venture it is very important to figure out how the organization is going to build its chain of command. Basically no business is made for short time and for this reason a very careful measurement should be done on ownership. 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Example of a sole proprietorship can be a hairdresser that buys a chair for their business and can get customers directly for them. 2. Partnership †¢ WhenRead MoreThe Types of Business Ownership Essay examples840 Words   |  4 PagesThe Types of Business Ownership This report is about the advantages and disadvantages of different types of business ownerships. Introduction I am going to write about the advantages and disadvantages of different business ownerships including: * Sole Trader * Partnership * Franchise I will include the definitions of some of the business ownerships. Main Body SOLE TRADER Sole trader, as the name suggests, is where anRead MoreInvestigation of the Types of Business Ownership Essay801 Words   |  4 PagesInvestigation of the Types of Business Ownership JCC Limited is a private limited company. Other forms of business ownership include: The sole trader. This is the most common form of private sector business. This type of business has one owner who runs the business and may employ any number of people to help. Advantages of being a sole trader include the lack of legal restrictions, the sole trader is able to set up their business relatively quickly. Also all profits Read MoreTypes Of Business, Purpose And Ownership Of Two Contrasting Business2226 Words   |  9 PagesP1:Describe the type of business, purpose and ownership of two contrasting business Coca cola Coca Cola is a soft fizzy drink sold in every store throughout the world. It is produced by The Coca Cola Company of Atlanta in Georgia, and is often called as Coke. Purpose:- The purpose of coca cola is to design develop and advertise soft drinks the customers can enjoy, and also make profit from selling of soft drinks. Ownership:-The history of coca cola begin In 1892, Candler set out toRead MoreTypes Of Business, Purpose And Ownership Of Two Contrasting Businesses Essay1227 Words   |  5 PagesTASK-1 Describe the type of business, purpose and ownership of two contrasting businesses. (P1). 1. A brief introduction to the two local businesses? For profit business kokuyo camlin limited (Kokuyo camlin limited) Source: https://www.google.co.in/search?q=kokuyo+camlin+logo Introduction: kokuyo camlin ltd formerly known as camlin ltd is an Indian stationery company based in Mumbai india kokuyo japan holds around 51% stake in kokuyo camlin camlin manufactures art materials market