Business Organization



Business Organization

Question 1

A sole proprietorship is a form possessed by one individual, who has administration and control over earnings (Kubasek, 2012). It is simple to structure and just as simple to break up. There are less start-up expenses and not as many rules. With this business form, one must understand the sphere of the company generally depends upon the proprietor and the initial expenses are taken from the proprietor's funds.

A partnership is two or more individuals joining together to structure a business. General affiliation refers every partner has an aptitude to make choices and direct the company. It is a good option as the business pays less in startup expenses and is subject to few rules. Nevertheless, associates presuppose legal responsibility of the company and disagreement among them can direct towards the partnership breaking up (SBA.gov, 2012).

A joint venture is general affiliation for some time or particular assignment. Associates are permitted to expand this business form, but must request for an expansion.

A limited liability corporation is a blend of a company and joint venture. It lets a business to be taxed as a joint venture, but permits the company have the limited legal responsibility of a business. In an LLC, partners have limited accountability in opposition to their individual resources. Associates are taken as freelance when it comes to impose tax. They have to compensate the self employed part of Social Safety and Medical care (SBA.gov, 2012).

Betty has carried out some investigation on franchise option. It is a contract among one who possess a trade name and an individual who will trade the products of that brand (Kubasek, 2012). It is a good option if you want to operate your individual company, but have limited knowledge or funds. Conversely, you may lose funds if you do not investigate cautiously ...