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BUSINESS

ORGANIZATION

an entity formed for the purpose of carrying on commercial enterprise.• Business organization. .

TYPES OF STRUCTURE Sole Proprietorship Partnership Corporation .

Sole Proprietorships are the most numerous form of business organization. .Sole Proprietorship A Sole Proprietorship consists of one individual doing business.

dissolution. • Subject to fewer regulations. . • Limited life • Low start-up costs and low • It may be difficult for an operational overhead.Advantages Disadvantages • Ease of formation and • Unlimited liability. • No corporate income taxes. Any income realized by a sole proprietorship is declared on the owner's individual income tax return. • Ownership of all profits. individual to raise capital.

.Partnership A Partnership consists of two or more individuals in business together. Or as large as some of the big legal or accounting firms that may have dozens of partners.

• Possibility of disputes or • Subject to fewer conflicts between partners regulations than which could lead to corporations. . • No corporate income taxes. • Stronger potential of access to greater amounts of capital. easy to form.Advantages Disadvantages • Synergy • Unlimited liability. • Partnerships are relatively • Limited life. dissolving the partnership.

A corporation is a legal entity doing business. and is distinct from the individuals within the entity. .Corporation Corporations are probably the dominant form of business organization.

• Double taxation. . • Regulatory restrictions.Advantages Disadvantages • Unlimited commercial life. • Limited liability. stock. • Ease of transferring ownership by selling stock. • Greater flexibility in raising • Higher organizational and capital through the sale of operational costs.