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Basic Forms of Business Ownership

This page will provide a brief overview of the different types of basic forms of business ownership including: corporation, sole proprietorship, and partnership.

Corporations A corporation is a legal entity with authority to act and have liabilityseparate from its owners. They make up 19 percent out of all the basicforms of ownerships. They account for 89 percent out of all the profitsfrom the basic forms of ownerships. Some advantages of corporationsare more money for investment, limited liability, perpetual life, andsize. Some disadvantages of corporations are expensive initial costs,double taxation, and conflict with the board of directors. There are twotypes of corporations, conventional (C) corporations and Scorporations. A S corporation is a unique government creation thatlooks like a corporation, but is taxed like sole proprietorships andpartnerships. They have the benefit of limited liability, but their profitsare taxed as the personal income of the shareholders, thus avoidingthe double taxation of C Corporations. Examples include: VarsityLiquors in Princeton, NJ and Conte Brothers Automotive in Cherryhill,NJ.

Sole ProprietorshipA sole proprietorship is a business that is owned and usually managedby one person. This is the most common form of business ownership.Advantages include: being your own boss, leaving a legacy, ease of starting and ending a business. Disadvantages include: limitedfinancial resources, unlimited liability, and overwhelming timecommitment. They make up 74 percent of businesses, but only take sixpercent of all profits. An example of this type of business is TheBrunswick Fitness Store in Marlboro, NJ.Partnerships A partnership is a business between two or more people. It is the leastcommon type of all the basic forms of ownership. Out of all business itmakes the least amount of profits. Advantages include: more financialresources, shared management and knowledge, and longer survival.Disadvantages include: unlimited liability, division of profits,disagreements among partners and the partnership will be difficult toterminate. An example of a partnership is Mobile Exchange, which islocated in New Brunswick, NJ.

CLASSIFICATION

library classification is a system of coding and organizing library materials

(books, serials, audiovisual materials, computer files, maps, manuscripts,realia) according to their subject and allocating a call number to thatinformation resource. Similar to classification systems used in biology, bibliographic classification systems group entities that are similar together typically arranged in a hierarchical tree structure. A different kind of classification, called a 'faceted' system, is also widely used. This synthesisesa class mark from various aspects of the subject.Classification of a piece of work consists of two steps. Firstly the 'aboutness'of the material is ascertained. Next, a call number,(essentially a book'saddress), based on the classification system will be assigned to the work using the notation of the system.It is important to note that unlike subject heading or Thesauri where multipleterms can be assigned to the same work, in classification systems, each work can only be placed in one class. This is due to shelving purposes: A book can have only one physical place. However in classified catalogs one mayhave main entries as well as added entries. Most classification systems likeDDC and Library of Congress classification, also add a cutter number toeach work which adds a code for the author of the work.Classification systems in libraries generally play two roles. Firstly theyfacilitatesubject accessby allowing the user to find out what works or documents the library has on a certain subject. Secondly, they provide aknown location for the information source to be located (e.g where it isshelved).Until the 19th century, most libraries had closed stacks, so the libraryclassification only served to organize the subject catalog. In the 20thcentury, libraries opened their stacks to the public and started to shelve thelibrary material itself according to some library classification to simplifysubject browsing.Some classification systems are more suitable for aiding subject access,rather than for shelf location. For example, UDC which uses a complicatednotation including plus, colons are more difficult to use for the purpose of shelf arrangement but are more expressive compared to DDC in terms of showing relationships between subjects. Similarly faceted classificationschemes are more difficult to use for shelf arrangement, unless the user hasknowledge of the citation order.

Organization