Premium Essay

Advantages and Disadvantages of Each Business Type

In: Business and Management

Submitted By danielle43
Words 543
Pages 3
A business (company, enterprise or firm) is a legally recognized organization designed to provide goods and/or services to consumers. Businesses are predominant in capitalist economies. Most businesses are privately owned. A business is typically formed to earn profit that will increase the wealth of its owners and grow the business itself. The owners and operators of a business have as one of their main objectives the receipt or generation of a financial return in exchange for work and acceptance of risk. Notable exceptions include cooperative enterprises and state-owned enterprises. Businesses can also be formed not-for-profit or be state-owned.
Sole proprietorship: A sole proprietorship is a business owned by one person. The owner may operate on his or her own or may employ others. The owner of the business has personal liability of the debts incurred by the business.
Partnership: A partnership is a form of business in which two or more people operate for the common goal which is often making profit. In most forms of partnerships, each partner has personal liability of the debts incurred by the business. There are three typical classifications of partnerships: general partnerships, limited partnerships, and limited liability partnerships.
Corporation: A corporation is either a limited or unlimited liability entity that has a separate legal personality from its members. A corporation can be organized for-profit or not-for-profit. A corporation is owned by multiple shareholders and is overseen by a board of directors, which hires the business's managerial staff. In addition to privately-owned corporate models, there are state-owned corporate models.
Cooperative: Often referred to as a "co-op", a cooperative is a limited liability entity that can organize for-profit or not-for-profit. A cooperative differs from a corporation in that it has members, as opposed to…...

Similar Documents

Premium Essay

Advantages and Disadvantages of Four Types of Organisation Structure

...Advantages and disadvantages of four types of organisation structure In this essay, I shall analyze relevant examples of existing companies, present their organization design, organization chart, work specialization, chain of command, span of control, for the purpose of presenting the advantages and disadvantages of four types of organization structure. As Mintzberg defined it, "The structure of an organization [is] the sum total of ways in which it divides its labour into distinct tasks and then achieves co-ordination among them" (Boddy, 2008:319) and "makes possible the application of the process of management and creates a framework of order and command through which the activities of the organization can be planned, organized, directed and controlled" (Mullins 2007:564). As the business environment evolves, traditional approaches to organizing work are being reevaluated. Managers are searching out structural designs that are more appropriate to their environment, that are more relevant to the contingencies that reflect their organization. "Organisations are collections of people brought together for a purpose. To achieve this purpose successfully, people need to be organised within the best possible structure. Decisions on structure are primary strategic decision. Structure can make or break an organisation." (Lundi and Cowling 1996:141). Firstly we are going to examine the organization structure of Pharma Nord, a Romanian import, export and distribution......

Words: 1325 - Pages: 6

Premium Essay

Some Advantages and Disadvantages of Internet

...Some advantages and disadvantages of internet [pic] Availability of Knowledge Advantages The internet which was once just a little puddle, now, have become an ocean; an ocean of knowledge. It is like a magical crystal ball which has an answer for every question of yours and the best thing about it is; it is completely free. I know how much I have learnt from the internet. How internet is better than books when it comes to knowledge? The answer to this would be the infinity of the internet. Plus, apart from this, learning from internet is much more fun. You have all kinds of videos about basically every topic that you can imagine of. Disadvantages If availability of knowledge helps people to do good things, it is also, a help for evil. There are thousands of websites which tells you ways to make a bomb or how to commit suicide. People even learn how to hack websites from the internet. [pic] Communication Advantages Another amazing thing about the internet is the communication that it makes possible. Most of the business firms communicate with each other with the help of e-mails. It is not only a faster way but also the safer way too. With internet you can video chat with a person who might be in some other continent as of yours. Disadvantages We are getting so use to of virtual communication that we are lacking a physical contact with our acquaintances. It is separating us from the real world around us, which I think smothers the development of personality......

Words: 1431 - Pages: 6

Free Essay

Business Structures; Advantages and Disadvantages

...Business Structures Paper Finance/571 August 5, 2013 Business Structures Entrepreneurship is an excellent opportunity for individuals seeking the independence of running their own business. Starting a business can be a quite daunting task for anyone who is looking to do so. Potential business owners must be ready to invest much of their time and energy to the planning and startup phases of their business. Those activities include conducting research, creating a business plan, securing financing and marketing. Additionally, business owners also have to decide the type of business form that they would like to operate under. There are three main business structures in which entrepreneurs must establish their business. The following paper will detail the three business structures along with the advantages and disadvantages that each hold. Sole Proprietorships The first and most simple form of a business is a sole proprietorship. Within this form of business structure, the owner usually owns and manages all aspects of the business. Additionally, taxes are not paid on a sole proprietorship as a company; instead the owner pays taxes off of the income that is received from the business. As in all business structures, there are both advantages and disadvantages to operating as a sole proprietor. The advantages of sole proprietorships are minimal legal costs of formation; owners have absolute control over decision making and the ease of business......

Words: 738 - Pages: 3

Free Essay

Business Structures: Advantages and Disadvantages

...Business Structures: Advantages and Disadvantages FIN/571 09/23/13 Kenneth Baker Introduction Starting a business can be challenging for individuals. That individual will have to decide which business structure will be right for their business and develop a solid business plan from that structure. There are many business structures available to new business owners, there is sole proprietorship, partnership, limited liability company and corporation. This paper will identify each structure and list the advantages and disadvantages of each structure. Sole Proprietorship  Sole proprietorship has no other owners to divide profits with, which allows a sole proprietor to use company funds in any way the individual see fit. Sole proprietorships are easier to set up out of the other structures and is easy to separate. Some advantages are no business registration is not required, there is no requirement to file formation documents like the person would if their business structure were LLC. Sole proprietorship has easier bookkeeping. The owner and business are one and the same so it is like balancing your checkbook. Any profits are taxed at the owners individual federal tax rate so that person does not have to file a separate business tax. The disadvantages would be the lack of liability protection for the business owner. This means the owner would have to take personal responsibility to pay every business debt and obligation and their personal assets are not protected......

Words: 775 - Pages: 4

Premium Essay

Advantage and Disadvantages

...Layout by: Ndabase Printing Solution Printed by: Government Printing Works CURRICULUM AND ASSESSMENT POLICY STATEMENT (CAPS) LIFE SCIENCES GRADES 10-12 FOREWORD by thE ministER Our national curriculum is the culmination of our efforts over a period of seventeen years to transform the curriculum bequeathed to us by apartheid. From the start of democracy we have built our curriculum on the values that inspired our Constitution (Act 108 of 1996). the Preamble to the Constitution states that the aims of the Constitution are to: • heal the divisions of the past and establish a society based on democratic values, social justice and fundamental human rights; improve the quality of life of all citizens and free the potential of each person; lay the foundations for a democratic and open society in which government is based on the will of the people and every citizen is equally protected by law; and • • • build a united and democratic South Africa able to take its rightful place as a sovereign state in the family of nations. Education and the curriculum have an important role to play in realising these aims. in 1997 we introduced outcomes-based education to overcome the curricular divisions of the past, but the experience of implementation prompted a review in 2000. This led to the first curriculum revision: the Revised National Curriculum Statement Grades R-9 and the National Curriculum Statement Grades 10-12 (2002). Ongoing implementation......

Words: 21816 - Pages: 88

Premium Essay

The Advantages and Disadvantages of Different Types of Media

...1. Introduction In this report I will be analysing the advantages and disadvantages of the main types of media used for promotional activities. The main types of media I shall be analysing are: newspapers, television, radio, and billboards. 2. Findings a. Newspapers Promoting a business through a newspaper may seem ‘outdated’ by some as the world of technology continues to grow, develop and capture audiences of all ages. However, there are still some advantages to using a newspaper as a promotional tool. A national newspaper can help you reach large amount of people whereas a regional newspaper has reader loyalty and they will trust the brands they see in this paper a lot than if they were to see an advert online. A regional newspaper can also help a business to gain high coverage within a geographical area so if you were trying to advertise a small business in a local area a regional newspaper would be perfect for this. A newspaper advert is quick; it will often come out the next day. You can also get a lot of room to promote, if you need it. There are also a few disadvantages to using newspapers for promotional activities. Newspapers are known as ‘flat’ advertising. This means that they can’t make noise or grab attention in any other way for the audience. You can’t make a last minute change with a newspaper, because of tight printing schedules. Large space adverts are also very expensive. Lastly, newspapers tend to deliver only to an adult audience, so if you...

Words: 1080 - Pages: 5

Premium Essay

Voip Advantages and Disadvantages

...VoIP Advantages and Disadvantages The pros and cons of IP technology by Daniel Kochmanski DDK Telecommunications Buffalo, New York VoIP (Voice over Internet Protocol) is the ability to transmit and receive voice telephone calls over an Ethernet data connection. Ethernet data connections are used to connect computers inside an office building across a LAN (local Area Network) also known as intranet as well as connect computers to the world wide web (www) also known as a WAN (Wide Area Network) or internet. I must explain that VoIP (Voice over Internet Protocol) is utilized in two different ways. The first method, and the first one created, is for inbound and outbound phone service via VoIP service providers. The service can be via SIP (Session Initiation Protocol) trunking or a VoIP adapter. The second method is utilizing VoIP signaling directly to a business multi-line telephone is known as an IP (Internet Protocol) based phone or IP phone for short. I shall explain the advantages and disadvantages of IP business phones later in this article. I’ll also explain why a Hybrid system may be your best solution in the final paragraph. VoIP service provider companies, such as net2phone (IDT Corp) and iConnectHere (DeltaThree Corp.), started selling VoIP phone service back in the 1990’s. My personal experience back then was that the quality was very poor mostly due to lack of sufficient bandwidth, internet speed and compression techniques. Today there are......

Words: 4676 - Pages: 19

Premium Essay

Essay Advantages and Disadvantages Online Business market namely Singapore. The Group's total asset as at 31 December 2012 stands at approximately RM2.0 billion while the paid up capital stands are RM 142 million. The Group is divided into three main divisions comprising Cement Division, Ready-Mixed Division and Aggregates & Premix Division. In Cement Division, Cimaco Quarry Sdn Bhd provides the required limestone for Negeri Sembilan Cement Industries Sdn Bhd (NSCI). NSCI leads The Cement Division with cement plants in Bukit Ketri, Perlis and Bahau Negeri Sembilan. The two plants combined, make up a total clinker production of 2.95 million tonnes per annum and a total production cement capacity of 5.6 million tonnes per annum, comprising Ordinary Portland Cement (OPC), Type II OPC, Masonry Cement and Portland Composite Cement (PCC). Pemasaran Simen Negara coordinates customer-oriented services such as the marketing, selling and distribution of the Group's cement under the brand name of 'Blue Lion', 'NS Cement', 'NS Brick', 'NS EcoCrete' and 'NS EcoCrete LH'. In Ready-mixed Division, Unipati Concrete Sdn Bhd and I-Mix Concrete Industries Sdn Bhd manufacture ready-mixed concrete for sales in Peninsular Malaysia. Both companies operate more than 26 batching plants supported by a fleet of 247 mixer trucks. Kuari Pati Sdn Bhd and KUAD Sdn Bhd lead the Aggregates and Premix Division and offer products namely premix and quarry materials and other services. The Group commands a strong market presence with......

Words: 3895 - Pages: 16

Premium Essay

Advantages &Disadvantages

...Advantages and Disadvantages of Convention and Concept Advantages of accounting concepts, conventions and regulations. There are many advantages that accounting concepts have on financial statements. Four important accounting concepts that underpin the preparation of any sets of accounts one of which is going concern that helps an account to assume for any future problems that occur in a business. This helps companies to make future plans and gives them time to gather money to sort out any financial problems. Consistency also has an advantage in helping in accounting by users of accounts can make more meaningful comparisons of financial performance. Prudence helps investors sort out financial performance such as future problems and cost of the business before recognising any signs of profits. Accruals also help financial data to be useful for users by all business revenues and cost are recorded in the appropriate statements and at the appropriate time. Conventions also have many advantages in influences financial statements to be useful for investors. Separate entity is one example this convention seeks to ensure that all private transactions and matters relating to the owners are segregated from transactions that relate to the business. This is an advantage because owner’s transactions are kept private. Also they are not mixed with the business finance so that users can clearly see the business financial state. Also materiality is also an important convention in a......

Words: 327 - Pages: 2

Premium Essay

Advantages and Disadvantages of Database Management Programs access the DBMS, which then accesses the data. There are different types of DBMS ranging from small systems that run on personal computers to huge systems that run on mainframes. There are a lot of database software manufacturers out there and a wide range of prices, sizes, speeds and functionalities. At the lower end of the scale are personal database software products like Microsoft Access, which is designed to be used by individuals or small companies relatively little data. User friendliness and ease of use are the priority rather than speed and scalability (in other words, it works well when you have 100 records but not when you have 100,000). At the higher end are full-fledged enterprise solutions, such as Oracle Enterprise Edition. These database software products can handle millions of data entries and are fast and efficient. They have ·many optimization and performance tools and generally require a Database Administrator (DBA) to look after them. Products in this range can also be very expensive. In file system, each application has its own private files, which cannot be shared between multiple applications. This can often lead to considerable redundancy in the stored data, which results in wastage of storage space. By having centralized database most of this can be avoided. It is not possible that all redundancy should be eliminated. Sometimes there are sound business and technical reasons for· maintaining multiple copies of the same data. In a......

Words: 631 - Pages: 3

Free Essay

Advantages and Disadvantages of Partnership

...Advantages and disadvantages of partnership Although many people going into business form a sole proprietorship, this is not always possible or desirable. Partnership can be a good alternative to a sole proprietorship. It is a business association consisting of two or more people with a view to make profits. And like any form of business partnership has its advantages and disadvantages. The main advantage of this form of business is simplicity of formation. There are few legal formalities to complete when setting up the business, the legal procedures for starting a partnership are limited to registering with HM Revenue and Customs. Also, like sole proprietorships they are not subject to public report so the partnership can keep its affairs to itself. What’s more, for partnership it is easier to multiply sources of capital, for example by bringing in new partners. Besides, they often receive favoured treatment by government as well as tax benefits. On top of that, partners can share the work; they will be able to cover each other for holidays and illness. The key decisions are made collaborately so the success of the business isn’t entirely dependent on one person and partners can share the burden. There are, however, some difficulties associated with this form of business. The main drawback is unlimited liability. Each partner is equally liable for the debts of the business to the full extent of their personal wealth. Besides, having unincorporated status, partners can be......

Words: 407 - Pages: 2

Premium Essay

Advantages and Disadvantages of Pursing an Mba

...Advantages and Disadvantages of Pursuing an MBA Advantages and Disadvantages of Pursing an MBA The decision to pursue a Master’s in Business Administration is a difficult, personal decision. In fact, I categorize it as a life changing decision. For instance, this decision is like most major decisions people make. Whether the decision is over buying a home, changing careers, starting a family or buying that dream car, it is usually laced with advantages and disadvantages, pros and cons, and benefits and consequences. Whether or not those advantages and disadvantages are tangible, quantifiable and measurable, most would agree that they exist and they sometimes have life changing affects. For example, some people think that it is a disadvantage to buy a home because it usually results in one securing a long-term loan whereby a monetary commitment is required from the borrower or homeowner. If this commitment is broken or one is unable to pay as agreed, the borrower or homeowner can lose valuable assets, seriously hinder their ability to borrow money in the future and be looked upon by the banking and financial community as a liability or risk. On the other hand, or some of the advantages of buying a home may result in credit worthiness, proves that you are trustworthy, disciplined and according to Weintrub (2010), “gives one a sense of pride in ownership, stability and security” (para. 2.). With the above mention in mind, I will explore my personal advantages and......

Words: 1259 - Pages: 6

Premium Essay

Explain the Advantages and Disadvantages of the Main Forms of Business Organizations

...The four main forms of business organizations namely sole proprietorship, partnership, C corporation, and S corporation have various advantages and disadvantages in terms of tax implications, legal status, financial obligations, and even set up time and compliance issues. A sole proprietorship is an individual based business. The advantages of sole proprietorship are various including the easiness to start and dissolve the company, the ability to have personal and complete control over the company, and the ability to retain all profits and include them in personal tax returns. Sole proprietorship has some disadvantages that include the owner’s unlimited liability over the company. The owner is legally responsible for all the debts of the company. Another disadvantage is that it is hard to raise funds because it depends on one person who might not have sufficient funds. It may also be difficult to attract high skills and professional employees because some would want to either have a high ranking position in the company or the chance to buy stock. Sole proprietors are also taxed more than corporation for example corporations pay 15% tax for income up to $ 50,000 while sole proprietors pay 15% (if filing married filing jointly) for income up to 35, 800 only. Financial statements for sole proprietorship are the income statement, the balance sheet, the statement of cash flows, and the statement of owner’s equity. In a partnership there are two or more owners. Partnership is......

Words: 667 - Pages: 3

Premium Essay

Training Method | Type of Training | Advantages | Disadvantages |

...Training Method | Type of Training | Advantages | Disadvantages | Online or E-Learning | Web-based trainingTele- or videoconferencing.Audioconferencing.Web meetings, or webinars.Online colleges and universities.Collaborative document preparation.E-mail. | Online or e-learning programs are effective for training across multiple locations.They save the company money on travel expenses. They can be a less expensive way to get training from expert industry professionals and consultants from outside the company. They are useful for refresher training. They are good for self-directed learning. They can be easy to update with new company policies or procedures, federal regulations, and compliance issues. They offer trainers a growing array of choices for matching training programs to employee knowledge and skill levels. | These programs require trainees to be computer literate.They are usually generic and not customized to your company’s needs.Some employees may not like the impersonal nature of this training.Employees may be too intimidated by the technology or the remoteness of the trainer to ask questions.Lack of computer terminals or insufficient online time may restrict or preclude access to training.Inadequate or outdated hardware devices (e.g., sound cards, graphics accelerators, and local area networks) can cause programs to malfunction.Your company’s Internet servers may not have enough bandwidth to receive the materials. Self-instruction offers limited opportunities to......

Words: 2492 - Pages: 10

Premium Essay

The Advantages and Disadvantages of Incorporating a Business

...In order to mention all the advantages and disadvantages of incorporating a business, first I should try to explain what a corporation is. In 1819, Chief Justice Marshall of the United States Supreme court said: " A corporation is an artificial being, invisible, intangible, and existing only in contemplation of the law." In the Webster's College Dictionary corporation is defined as "an association of individuals, created by law and having an existence apart from that of its members as well as distinct and inherent powers and liabilities." A corporation is divided into many units called shares of stock. The owners of the stock are called stockholders or shareholders. One of the advantages of incorporating a business is that because a corporation has a legal existence, shares can be sold at any time without affecting the operations of the corporation. Also, shares can be bought at any time. Another big advantage of incorporating a business is that corporation have limited liabilities. This means that the corporation is responsible for its own acts and obligations under the law. This characteristic protects the stockholders of the corporation because the only financial loss that they may suffer is limited to the amount invested. Also, the creditors of the corporation can not go beyond the assets of the corporation to satisfy their claims. The stockholders or the shareholders are the ones who have control over the management of a corporation's operation and......

Words: 451 - Pages: 2