Business Ownership Ownership, Corporation, And...

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 under different types of ownership. However, a single business cannot take a different form. Each type of ownership is best for a particular situation or purpose, for example in respect to liability, capital, and the ability to control profit and loss accounts. Therefore, the dynamics of commercial business lies in understanding the three types of business ownership as well as their formation, characteristics, and merits and demerits. Sole Proprietorship Sole proprietorship refers to a situation when a business is owned by one person. It is normally the simplest way to initiate a business since the sole proprietor is fully responsible for all the activities and operations. In addition, he or she is responsible for all the obligations and debts related to the business. Therefore, all the profits go either to the sole proprietor or are injected back in to the business as investment. It is characterized by unlimited liability, which means that a creditor with a claim against the proprietor has the right to claim his personal or business assets. SoleShow MoreRelatedThe Importance Of Corporate Finance For An Entrepreneur1602 Words   |  7 Pagesit plays in an organization regardless of the structure of a company, or stage of growth. The various forms of ownership are reviewed for startup companies and major corporations to highlight the advantages and disadvantages of each form of ownership, and to illustrate the importance of corporat e finance. To provide a balanced view of ownership, less common forms of business ownership are examined using the same criteria to further illustrate the importance of corporate finance. Read MoreTypes 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 MoreBusiness Structure Of A Company1350 Words   |  6 PagesIntroduction Heidi Birmingham and James Roberts are interested in starting a business and in the process of deciding which business entity to declare. The duo already has completed two vital elements of starting a business which include developing a business plan and securing financing to cover business start-up costs. However, choosing an appropriate business structure is no easy task since it significantly impacts business formation, financial and tax accounting, and other legal processes. Ms. BirminghamRead MoreTypes Of Business : A Sole Proprietorship Business1397 Words   |  6 Pagesdisadvantages of each type of business. A sole proprietorship business is a business that is usually owned and ran by one individual person. A sole proprietorship business has many advantages. The reason why a lot of people choose a sole proprietorship business is because they are their own boss. This type of business is the easiest business to start making it the most simple business to run. There are no lega l documentation needed to start a sole proprietorship business. Since there is no need forRead MoreAn Assignment on Business Ownership1142 Words   |  5 PagesAn assignment on Business Ownership Ba-1105: Introduction to Business Business Administration Discipline, Khulna University Among a few types of Business Ownerships Sole-Proprietorship, Partnership and Corporation Business will be discussed below. * Sole-Proprietorship * This is the most oldest and common form of business ownership. It is a individually operated organization. * The sole proprietorship is the form of business ownership which is owned amp;Read MoreBusiness Management : The Corporation920 Words   |  4 Pagesstarting a business or if you have been operating your business as a sole proprietorship/general partnership, you might wonder about the advantages that come with incorporating your business as an S corporation. Many business owners immediately assume that doing so would be too expensive or too time consuming, but neither drawback is actually true. Additionally, the LLC is now an option for those looking for a different option. In the not too distant past, only individuals or corporations could beRead MoreFormation Of A Business, Corporation, And Limited Liability Companies760 Words   |  4 Pages Formation of a Business Providing for your family is a requirement. Some men and women go to work daily in an effort to make sure bills are paid, and food is on the table. All jobs are not easy; some are mentally stressful, and others are hard on your body. With all this being said, the American dream is to go into business, someday. Some ways of going into business are through sole proprietorship, partnership, corporation and limited liability companies. This paper will discuss the differentRead MoreIntroduction To Financial Management Essay1146 Words   |  5 Pageshow much value is attributable to goods and services and the basis of such attribution. Financial management may be defined as the management of the finances of a business or an organization in order to achieve the financial objectives. It includes creation, effective utilization of funds to ensure the smooth functioning of the business. It encompasses planning, administration and controlling. The various sub areas of finance are: 1. Investments – deals with deciding on what kinds of securities/bondsRead MoreThe Limited Liability Partnership ( Llp )1299 Words   |  6 PagesThe limited liability partnership (LLP) is another type of partnership. LLP is â€Å"a partnership consisting of one or more general partners and one or more limited partners† (p. 554). â€Å"It was created to limit the personal liability of the partners of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision† (Nickels, McHugh, McHugh, 2013, p. 119). This business form also â€Å"allows a partnership to continue as a pass-through entityRead MoreEntrepreneurship Is A Vital Element For Invigorating Monetary Development And Employment Opportunities1361 Words   |  6 Pagesthe market conditions, private sector tended to be more entrepreneurial. When the increase of knowledge production, distribution and use supported this, entrepreneurship beg an to come to the fore. The meaning of entrepreneurship, starting one’s own business was established by Richard Cantillon in the 1700s. After that it has developed. Most of economists don’t believe its basic definition, they believe it is more than that. Today most economists concur that entrepreneurship is a vital element for invigorating