Management Coursework

Business management 14
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Abstract
The foremost decision one needs to consider in structuring the business. All the business need to adopt legal frameworks for defining the rights and the liabilities of all people taking part in a business. The decision made must have long term implications for the business. Each business organization has its pros and cons. People set different kinds of business by capital raised and merits and demerits involved in such a business. Tax implications need to be considered too in coming up with a business. This is because business is vulnerable to lawsuits and expects both profit and loss. In starting any business, one needs to access out all the cash needed in re-investing all the earnings with the aim of getting more profit. There are there main legal forms of business setting; these are sole proprietorship, partnership and corporation.
Key words: business, sole proprietorship, partnership, corporation
Business management week 14
In the business organization, there are primary three legal forms; these are the sole proprietorship, partnership, and corporation. Each of the forms has its own merits and demerits in a business setting. A sole proprietorship is a form of business which is majorly owned by one individual. A person decides to open a sole business due to personal interests and the kind of capital invested in it. The main advantage of one owned business is that an individual makes all the decisions. Thus, issues of differences in personality and business ideas do not arise in this case.

In addition, the owner is the only sole recipient all dues which arise in the business. However, when a business owner dies, the company will as well be terminated.
The partnership is a form of business which is owned by more than one person. In this case, the findings are not limited as in a business owned by an individual. It has an advantage of sharing knowledge and experience from different people. Therefore, making the business to have many ideas combined. Its main disadvantage is that the profit generated is shared among the partners. In case the business is sued, all the partners will be liable for the percentage of ownership. Finally, corporation entails many people raising capital to start a business because the shares are unlimited to any person to enter into a business. The main advantage of the corporation is that ownership transferability is easy. The demerit to this kind of business is that it has double taxation. In this case, it means that the business is taxed twice on the same income.
Conclusively, each business organization has its pros and cons. People set different kinds f business by capital raised and merits and demerits involved in such a business. In addition, there is various legal framework lied upon each kind of business.
 

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