Nobody downloaded yet

Other Organizational Forms for Small Businesses (Busniess Law) - Essay Example

Comments (0) Cite this document
Summary
The form a business chooses is fundamental since it determines the owner’s liability, how it’s taxed, how benefits, and expenses and…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.8% of users find it useful
Other Organizational Forms for Small Businesses (Busniess Law)
Read TextPreview

Extract of sample "Other Organizational Forms for Small Businesses (Busniess Law)"

Download file to see previous pages It is the most popular kind of business.
The owner of the business enjoys some advantages such as exemption from paying the corporate income tax. Also, he is his own boss, hence, able to keep the business secrets and make take total control of the business.This form of business is cheap and easy to form and dissolve without necessarily going through procedures like the other forms. The fact that the owner keeps all the profit is another highlight and motivation of sole proprietorship.
However, this business form has its own shortcomings. For instance the owner is subject to unlimited liability of business debts. There is no separation between the business property and personal property. Therefore, creditors can extend to personal property to pay for their claims. The starting capital for this business can be an obstacle due to lack of source of financing. This can also hinder the expansion of the business due to limited capital. It can also experience management problems especially if the owner is not familiar with such areas. The owner may lose everything in cases where the liabilities are too much to bear. It also lacks continuity because its existence entirely depends on the existence of the owner.
In a partnership, two or more people come together and form a business with a view of making profit. Each member is called a partner the members are collectively known as partnership firm. It consists of 2 to 20 people. The members require a partnership deed or agreement which is a document containing all the written agreements. Such agreements include names of the partners, how profit and losses will be shared, banking accounts, date of commencement, rights and duties of the members etc.
Advantages of this form of business include the sharing of losses. There is also more available capital to start and expand the business. Responsibilities are shared hence it is not a burden to one person like in ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Other Organizational Forms for Small Businesses (Busniess Law) Essay”, n.d.)
Retrieved from https://studentshare.org/business/1682466-other-organizational-forms-for-small-businesses-busniess-law
(Other Organizational Forms for Small Businesses (Busniess Law) Essay)
https://studentshare.org/business/1682466-other-organizational-forms-for-small-businesses-busniess-law.
“Other Organizational Forms for Small Businesses (Busniess Law) Essay”, n.d. https://studentshare.org/business/1682466-other-organizational-forms-for-small-businesses-busniess-law.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Other Organizational Forms for Small Businesses (Busniess Law)

Small Businesses

...? SMALL BUSINESS …………………. and Number …………….. …………. Table of Contents Table of Contents 2 Introduction 3 Modern Small Business Enterprises 4 Setting up a small business 5 Why it is worthwhile to set up a small business 6 What small business to be set up? 8 What does it take to be Worthwhile in starting a small business 9 Opportunities and Challenges in setting up the small business 11 Opportunities 11 Customer Focus 11 More direct personal service and Personal Contacts 11 Franchising 11 Shopping centres, loyalty cards and other recent trends 12 Challenges 12 1- Selecting the Proper location 12 Technology 13 Competition 13 Financing 14 Conclusion 14 References 15 Introduction Large multinationals around the world play dominant roles... and...
13 Pages(3250 words)Essay

Growth strategies in small businesses

...is that the extensive use of BPD enhances the firm’s knowledge-base resources and improves its organisational learning, therefore contributing to SME’s further growth. Research Question How Business process digitalisation can be used as a growth strategy for SMEs? Methodology Sample and Data Collection The initial sample will be consisting of 414 small and medium-sized manufacturers in engineering, electronics, computer and software industries of the UK. Only small manufacturers in these industries will be selected based on their capacity for innovation and intensive and extensive use of electronic and non-electronic environments to link with customers, suppliers, employees and...
1 Pages(250 words)Dissertation

Small Businesses are Entrepreneurship

... dimensions of this statement. Discussion To define, “entrepreneurship is the capacity and willingness to undertake conception, organization, and management of a productive venture with all attendant risks, while seeking profit as a reward” (Hatten, pp. 148-149, 2011). A glance at all other definitions of entrepreneurship will verify the fact that entrepreneurship, entrepreneur of entrepreneurial spirit is seen in line, primarily, with the elements of innovation and risk taking. Without any doubts, large sized companies and organizations create mechanisms and systems to diversify and decrease their risk over the period (Hatten, pp. 148-149, 2011) of time; however, small businesses are the ones that face great deal of uncertainty... and...
8 Pages(2000 words)Essay

Information Security Small Businesses

...? Information Security for Small Businesses Information Security The advancement in the field of computers has carried mankind to another level. All fields of life have been revolutionized with its advent and have changed its mode of operations, for example, acquisition of education has been made easier with the emergence of virtual learning platforms; organizations have improved their business procedures with information management systems etc. Information systems manage information in such a way that all business processes can be executed in an effective and efficient manner. Information and data might be related to the business processes of any...
4 Pages(1000 words)Research Paper

Cost Allocation in Small Businesses

...for Small Businesses Having discussed the impact of cost allocation on small businesses, let us also discuss some commonly used methods of cost allocation in order to determine which method suits the most to small businesses. Step-Down Method In this method, a support department is chosen by the managers for allocation of its costs among other departments. After doing this, managers choose the next support department for cost allocation. They also include the costs allocated to the previous department, as well as to the other remaining units/departments (Merritt, 2010). Absorption Costing Method Under...
4 Pages(1000 words)Research Paper

How globalization affect small businesses

...lack human resource to conduct the different activities of trading, then the sector is negatively affected as activities can not be accurately conducted (Dess, 89). Conclusion In conclusion, globalization is a continuous process as result of the technological changes and trends being introduced into the market. Globalization has advanced over time and the present globalization is different form the past globalization due to the changes that has happened within the environment and to technology. Globalization has been of great significance to small businesses as it had rendered with other alternatives to focus into international market by helping in removing barriers...
5 Pages(1250 words)Essay

Whats Holding Back Small Businesses

...base as they are not able to invest in big research projects to propel the business entity forward and continue to maintain their market share or better still increase the market share (Shleifer, 2004). The major challenge according to the article is not related to overregulation or taxation but low demand for business products. Over thirty percent of American small businesses attributed their underperformance mainly to poor sales. However, the research carried out by the National Federation of Independent Business also attributed the under performance to competition from large businesses, financing and interest rates, insurance cost...
2 Pages(500 words)Article

FORMS OF BUSINESSES

...Forms of Business: A Comparison and Case Analysis John Smith XYZ Forms of Business: A Comparison and Case Analysis Sole proprietorship Under the sole proprietorship form of business, the owner is fully responsible for the company, and this includes responsibility for acts of negligence. If a worker were to get injured on the job due to machinery or other accidents, the sole proprietor could at the minimum have to defend him or herself in a court case for being negligent. . The sole proprietor is fully responsible for meeting unpaid bills and is personally liable to all creditors in the event of bankruptcy. It...
6 Pages(1500 words)Essay

Business Law/Organizational Forms

...BUSINESS LAW ………………. College/ …………… ……………………. Introduction Selecting the appropriate form of business organization is as critical as deciding on whether to start a business or not. There are different forms of business organizations such as sole proprietorship, partnership, corporation, limited liability company etc. While choosing one of such forms, the entrepreneur should consider factors such as number of owners, tax considerations, limited liability, public or private, ownership transfer, management, organizing expenditure etc. This paper presents a brief report on various forms of...
7 Pages(1750 words)Essay

Forms of Legal Contracts for Large and Small Scale Businesses

...(Programs, 2013). Other reasons that demonstrate that this form of contracting is most effective for small businesses include the fact that this form of contracting is usually dedicated to small business where the contracts are of a federal purchase nature. In particular, this form is most applicable for the business, because its contracts are within the contract cost range of below USD 5 million; for example, the contract for DOD is worth about USD 600,000. Secondly, this form of contracting is most beneficial for these businesses, because the burden of...
6 Pages(1500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Other Organizational Forms for Small Businesses (Busniess Law) for FREE!

Contact Us