What are the 3 forms of business organization, and what are the advantages and disadvantages of each form? For a corporation, what is the overall goal of the financial manager? Do you agree with this goal? Why or why not?
A business organization is defined as an entity created for the purpose of conducting an industrial or commercial enterprise (“Business organization,” n.d.). The following are the most popular forms of a business organization:
Ø Sole Proprietorship (Brooks, 2013)
Ø Partnership (Brooks, 2013)
Ø Corporation (Brooks, 2013)
Sole Proprietorship is identified as the most popular and simplest form of an individually owned business (Brooks, 2013). There are multiple advantages of a proprietorship:
Ø Easy and inexpensive to establish