Business organizations:
1. Sole proprietorship
2. Corporation
3. Partnership
4. Franchises
● What are the positives and negatives of each type of business organization?
● Give an example of each type of business organization listed above.
● Which of the three business organizations is the best in your opinion? Please explain in detail.
Overview
Advantages
One, less paperwork
There are many different benefits to operating as a sole owner, especially if your business is tiny. However, one of the first and most fundamental benefits of using this business organization type is that you won’t have to fill out a ton of paperwork.
2. A simpler tax system
The tax requirements for sole proprietorships are also one of their largest benefits, especially when compared to those of other organization kinds.
3. Reduced company costs
Budgets might be limited when a firm is being established and being operated. Therefore, being able to avoid paying registration costs is another another important benefit of operating as a single proprietor.
4. Plain-speaking banking
Simplified banking is one of the single proprietorship’s next major benefits. Only sole proprietorships are permitted.
Disadvantages
1. No liability insurance
The benefits that come with having a legitimate business corporation are not available to sole proprietors since they are not required to register as a business with their state of operation.
2. harder to obtain company finance and financing
The fact that it may be more difficult for a sole proprietorship to get loans or funding than it is for other company structures is another drawback.
3. It’s more difficult to sell your company.
A sole proprietorship is by definition linked to a single person, making it very hard to transfer ownership to another person. So, if you pass away or decide you no longer wish to manage the business, it is over and your business is over.