Accountant in Business - Coursework Example

The form of business units will include sole proprietorship, partnership, and limited liability companies. This paper provides information that is relevant to assist the two brothers appropriately. In a business unit there are also motivating factors such as focus, strategy, hard work, honesty, and good communication skills to customers that the investors or entrepreneurs should always embrace. These will always facilitate the core purpose of a business structure that is profit making. This refers to a form of business organization that is owned by a single individual who manages the business, enjoys all the profits, and bears all the losses.

Most of the sole proprietorships are small business operations. Most of these business units provide services such as repair, delivery and carpentry. They are always operated in small houses or small offices. Quick decision-making and prompt action - There is always no interference with the thoughts of a sole proprietor from other sectors. The sole proprietor is always in a position to make his or her own decisions without any consultation. This will therefore facilitate fast decision-making and fast action.

The maintenance of business top secrets – Some of the sensitive information about the business structure are well known to the owner. He or she is not allowed to disclose any information pertaining the business issues. Apparently, he or she is not allowed to publish the business books of accounts. Unlimited liability – This is always a major problem in sole proprietorship since the owner will always be responsible for all the losses. If the business is unsuccessful, the owner will always to cut the costs by his or her personal assets.

Limited capital – At the start of a sole proprietorship, the source of money is always personal besides the amount you borrow. Unfortunately, the amount of money available may be limited to run the business operations smoothly. This may make the entrepreneur to strain in order