Business Organization

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Business Finance

Description

One of the first steps in making entrepreneurial business opportunities a reality is deciding what form the business will take.

Write a 525- to 700-word paper on the various forms of business organization.

Define each of the following forms and address the advantages and disadvantages of each:

  • Sole proprietorships
  • Partnerships
  • Corporations
  • Limited liability companies

Answer the following question and explain your answer:

  • What is the most appropriate form of ownership for an aggressive entrepreneurial firm?

Cite 3 peer-reviewed, scholarly, or similar references to support your paper.

Format your assignment according to APA guidelines.

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Explanation & Answer

Attached.

Running Head: FORMS OF BUSINESS

1

Forms of Business
Name
Instructor
Institutional Affiliation
Date

2

FORMS OF BUSINESS

One of the major decisions that a business owner should make is how the entity should be
designed. This decision is key because it will have long-term consequences for the business’s
growth and success. There are various forms of business organization that an entrepreneur can
choose from. These forms are;
1. Sole proprietorships
This type of business is owned and run by one person. Most small businesses begin as
sole proprietorships. The entrepreneur, in this case, own all the properties and the profits of the
business. The law regards the owner and the business as one entity.
Advantages of sole proprietorships


Sole proprietorship is easy to start since it requires less start-up capital and has a
minimum to no legal processes.



The sole proprietor is in control of all the decisions regarding the business. Therefore
decision-making process, in this case, is easy.



Sole proprietors enjoy all the profits generated by the business. They are in control of
what they will do with the profits



Profits from the business are injected directly into the entrepreneur’s personal tax return.

Disadvantages of sole proprietorships


This form of business has unlimited liability meaning that they are accountable for all ...


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