Business Organizations Essay Example | Topics and Well Written Essays - 500 words

Business Organizations - Essay ExampleIt is known that a creditor who has a claim against a sole proprietor has all rights to receive all his personal and line assets. It is called infinite liability. The sole proprietor is allowed to run his business under his own name without any some other words.Advantages all profits are received by sole proprietor, relatively low start-up costs and capital, the superlative freedom from regulation, minimal working capital, tax advantages to owner of the business, owner has the direct control over the decision-making process. Disadvantages unlimited liability, difficulties in raising capital and lack of continuity in sole proprietorship if the owner is absent for a long time. (Lucas 2002)Partnership is an agreement when two or more sides (persons) are going to integrate their available resources in one business. Partnership agreement has to be signed with the assistance of lawyers, because in fibre of dissolution or disagreement the busines s should protect its shareholders or other partners. According to the agreement wrong partners has to share in all the profits. There are two forms of partnerships general partnership (all partners are in person liable for all debts and obligations) and limited partnership (some members are responsible for debts). (Adelson 2002)Advantages easy formation, relatively low start-up costs, additive available resources of investments, possible t