Business Law

Sole proprietorship

Features

- The most common and simplest form of business is a sole proprietorship. Many small business operate in the United states are sole proprietorship.

An individual proprietor owns and manages the business and is responsible for all the business transactions. The owner is also responsible for all debts and liabilities incurred by the business they can own the business for any duration of time and sell it when he or she desire to do so.

Advantages

- The advantages of a sole proprietor has complete control and has the decision making power over the business. Sales and transfer can take place at the judgment of the sole proprietor meanwhile all the sales of the business the owner has the rights to receive all the profits.

Disadvantages

- The disadvantages of a sole proprietor of the business is to be held responsible for any debts and obligations of the business. The risk extends to any liabilities incurred as a result of the actions committed by the employees of the company, The responsibilities and business decision all falls on the shoulder of the sole proprietor. The access to capital is limited to personal funds plus any loans he or she obtain.

Partnership

Features (General partnership)

- A General partnership is formed when two or more people intend to work together to carry on a business activity with the goal of earning profit. A partnership is viewed as being one the same as its owners. Who invest capital, manage the business , and are personally liable for partnership debts. All partners are responsible for the business and the share all assets

Advantages

- General partnerships require very little paperwork. Unlike corporations, partnerships can operate in multiple states without getting new permits for each state general partnerships must abide by fewer regulations and are under less government supervision than corporations. This thrive when each partner brings a specific strength to the business....