By Alex Figueroa
2. Profit from all sales after expenses, goes to individual
3.Owner makes all decisions related to company
4. Hires all employies
Advantages- All company right offs go to single owner
Disadvantages- All earnings are taxed as income of the owner
Example: Vincenzo's my boss Anthony is the owner
Interesting details: There is over 20 Million Sole Proprietorship.
- They can work very little hours if they have the right employees
2. Share of Profits
3. Restrictions on Transfers of shares, money etc.
4. All are responsible for liabilities
Advantage- Expenses are split between multiple people
Disadvantage- Must have good faith and trust in each partner
Example- Everything Natural
Interesting Details- A partnership firm has no legal entity of its own. The firm and the partners are one and the same.
-Each and every partner is liable jointly and severally for the obligations of the partnership firm. If assets of the business are not sufficient to meet the liabilities of creditors then private property of partners can be used to meet them
2. Centralized Management
3. Limited Liability-Stockholders, who are owners of the corporation, are not liable for its debts or acts.
4.Corporations have full legal capacity to enter into contractual agreements on their own behalf.
Advantages- Everlasting the corporation doesn't die when it owners die
Disadvantage- Double taxation First, when the corporation turns a profit, it pays a corporate tax rate on the profit amount. The second time the corporation pays taxes is when it pays dividends to shareholders
Interesting Details: To set up a corporation the amount of legal regulations and requirements to start one is a lot and set by the state
-Tax free benefits such as insurance, travel, and retirement plan deductions
2. Usually is a successful business
3. Must be run on a certain standard
4. They drive to have locations as many places as possible
Advantages- Don't have to start a company from the ground up by yourself
Disadvantage- Purchasing a franchise can be expensive
Interesting Details: Franchisers offer financial, marketing, and training support to franchisees to help them grow their business in exchange for fees for using the franchiser's trade name and business model.
There are two types of franchises these are product distribution and the business format.
Non-For Profit Orginization
2. No motive for any profit
3. High source of income are donations
4. Managed by a group of executives
Advantages- These types of business are made for a purpose of helping not self benefiting
Disadvantage- If someone was to create on their would be no direct source of income from this type of business
Example: Red Cross
Interesting Details: managed by trustees who are fully accountable to their members and the society for the utilization of the funds raised for meeting the objectives of the organisation.
heir main aim is to provide service to a specific group or the public at large. Normally, they do not manufacture, purchase or sell goods and may not have credit transactions. Hence they need not maintain many books of account