Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 37 views

    Differentiating The Forms of Business Organization and Giving Examples of Forms of Business Organizations

    Uploaded by

    John Fort Edwin Amora
    The document differentiates between four main forms of business organization: sole proprietorships, partnerships, corporations, and limited liability companies. It provides details on the ownership structure, advantages, and disadvantages of each. Sole proprietorships are owned by one person who keeps all profits but has unlimited liability. Partnerships are owned by two or more people who share profits and liability. Corporations are separate legal entities from their owners who have limited liability but more complex formation. Limited liability companies are hybrid entities that provide limited liability with tax and ownership flexibility.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Differentiating The Forms of Business Organization and Giving Examples of Forms of Business Organizations

    Uploaded by

    John Fort Edwin Amora
    37 views24 pages
    The document differentiates between four main forms of business organization: sole proprietorships, partnerships, corporations, and limited liability companies. It provides details on the ownership structure, advantages, and disadvantages of each. Sole proprietorships are owned by one person who keeps all profits but has unlimited liability. Partnerships are owned by two or more people who share profits and liability. Corporations are separate legal entities from their owners who have limited liability but more complex formation. Limited liability companies are hybrid entities that provide limited liability with tax and ownership flexibility.

    Original Description:

    None

    Original Title

    Differentiating the Forms of Business Organization and Giving Examples of Forms of Business Organizations

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document differentiates between four main forms of business organization: sole proprietorships, partnerships, corporations, and limited liability companies. It provides details on the ownership structure, advantages, and disadvantages of each. Sole proprietorships are owned by one person who keeps all profits but has unlimited liability. Partnerships are owned by two or more people who share profits and liability. Corporations are separate legal entities from their owners who have limited liability but more complex formation. Limited liability companies are hybrid entities that provide limited liability with tax and ownership flexibility.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    37 views24 pages

    Differentiating The Forms of Business Organization and Giving Examples of Forms of Business Organizations

    Uploaded by

    John Fort Edwin Amora
    The document differentiates between four main forms of business organization: sole proprietorships, partnerships, corporations, and limited liability companies. It provides details on the ownership structure, advantages, and disadvantages of each. Sole proprietorships are owned by one person who keeps all profits but has unlimited liability. Partnerships are owned by two or more people who share profits and liability. Corporations are separate legal entities from their owners who have limited liability but more complex formation. Limited liability companies are hybrid entities that provide limited liability with tax and ownership flexibility.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 24

    Differentiating the Forms of Business

    Organization
    Are you all by yourself?
    Sole Proprietorship
    • Owned by only one person
    • Owner keeps all the profit
    • Relatively unlimited control
    • Very easy to form
    Advantages
    • Easy to start
    • No registration
    • No profit sharing
    • Easy decision-making
    • Keep Secrets (business techniques)
    • Complete Control
    Disadvantages
    • Unlimited liability
    • Employee benefits such as owner’s medical insurance premiums are not
    directly deductible from business income (taxes)
    • Raising funds
    • Limited Life
    • Loss in absence
    Do you have a friend and a good Idea?
    Partnership
    • Owned by 2 or more people
    • Shared profits are equal
    • Contractual Relationship
    • Has 3 types:
    • General Partnership
    • Limited Partnership
    • Limited Liability Partnership
    Advantages
    • Relatively easy to start.
    • The ability to raise funds.
    • More skilled persons.
    • Loss sharing.
    • No loss in absence.
    Disadvantages
    • Unlimited liability.
    • Profit sharing.
    • Conflicts
    • Limited life.
    • Transferability is difficult.
    Corporations
    • Legal Entity
    • Separate to the owner
    • Owners do not lose asset
    • Limited liability
    • Hard to form
    • Huge risk to be taken
    Advantages
    • Limited Liability.
    • Transfer of ownership by sale of stock.
    • Easier to raise capital through shares & bonds.
    • Continuity of existence.
    • Benefits of large scale operation.
    • Professional Management.
    • Social Benefit.
    Disadvantages
    • Formation is not easy.
    • Control by a Group.
    • Many Legal Formalities.
    • Excessive government control.
    • Delay in Policy Decisions.
    Limited Liability Companies (LLC)
    • Hybrid Entities
    • Has the traits of both Partnership and Corporation or even
    Sole Proprietorship
    • Separates the business asset and personal asset of the business
    Advantages
    •  Limited Liability.
    • Tax Flexibility.
    • Less Paperwork.
    • Investment allocation flexibility.
    • Freedom in management.
    • Limitless ownership.
    Disadvantages
    • Higher registration fees.
    • Government regulation.
    • Lack of case law.
    • Limit on Building capital.
    • Self-Employment Taxes
    Giving Examples of the Forms of
    Business Organization
    Examples of Sole Proprietorship businesses
    • Computer Repair Services
    • Catering Company
    • Housecleaning Service
    • Tutoring
    • Freelance Writer
    • Traditional Convenience Stores
    Examples of Partnership Businesses
    Examples of Corporations
    References
    • https://www.quora.com/What-are-some-examples-of-a-limited-liability-
    company
    • https://www.slideshare.net/Giratorio/forms-of-business-organizations
    • https://www.slideshare.net/JaswinderSingh116/different-forms-of-business-
    organisations
    • https://www.investopedia.com/terms/l/llc.asp
    • https://www.investopedia.com/terms/s/soleproprietorship.asp
    • https://www.investopedia.com/terms/p/partnership.asp
    • https://www.investopedia.com/terms/c/corporation.asp
    • https://smallbusiness.chron.com/10-examples-sole-proprietors-32858.html

    You might also like