Three types of a business organization - 36747

Solution Posted by
Hersheys74

Hersheys74

Rating : No Rating
Solution Detail
Price: $8.00
  • From: Business,
  • Posted on: Sun 15 Dec, 2013
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

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?

 

Discussion Board Assignment Guidelines:

  • Using the course materials and Web resources, research the three different types of business organizations.
  • Answer the following questions:
    • What are the three forms of a business organization?
    • 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?
Solution Description

 

The three most common legal forms of business organizations are:

  • ·         Sole Proprietorship
  • ·         Partnership
  • ·         Corporation

 

The sole proprietorship business is owned by one person and is normally one of the easiest and simplest types of business to start up and run.  Opening a sole proprietorship is a low-cost way to enter the business market (Sole Proprietorship, 2013).   A sole prop has no corporate taxes and pays income tax on the profits generated.  Setting up a sole proprietorship is fairly straight forward it generally only requires