Leagl Entitiesof Business

Legal Entities of Business

BUS105-0904B-10

Abstract

The 3 legal entities of business are: sole proprietorships, partnerships, and corporations. Sole proprietorships are businesses owned and operated by one individual. This individual is entitled to all profits and responsible for all of the debts. A plus is that they are the boss, and can discontinue the business at will. A partnership is owned by two or more people and they have the ability to draw on the skills and abilities of each other. The start up of the business is easy, and more investment capital is available. A corporation differs from the other legal forms of business. The law regards it as an artificial being, possessing the same rights and responsibilities as a person.

Legal Entities of Business

My name is Monica Woods. I am a single mother of two boys, ages 5 and 17. I am currently working in Finance within a government entity. My goal is to receive my Bachelor of Business Administration with a concentration in Accounting and Finance. I have been working in Finance for the past 9 years, and I love it. While working in the government sector, and preparing to obtain my degree, I plan to move into a management role. There are several opportunities that are available at the present time that requires a degree, and I have the knowledge and experience, but no degree. Obtaining my bachelors degree has always been a dream of mine, and I am finally at a point in my life where I intend to accomplish my dream.

Your choice of whether your business should be a proprietorship, a partnership or a corporation can be important for many reasons. Each has its advantages and its disadvantages depending on the type of activity that you would like to engage in. A business owned and managed by a single person is a proprietorship. When two or more people own a business and agree to share in the profits is considered to be a partnership. A corporation is a business that is...