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

Business Structures - Essay ExampleSole proprietorship is a problem structure run by one person. As such, the major advantages of a sole proprietorship argon that the owner has full control of the bloodline and does non share the profits with anyone. This type of business structure is likewise advantageous since decision making is faster as the owner makes tout ensemble the decisions affecting the business without having to get anyones approval. Additionally, sole proprietorship is the simplest business venture to start as there are not many legal requirements. Nevertheless, sole proprietorships also have certain disadvantages, which a business entrepreneur must consider. Firstly, the sole proprietor bears all the liabilities of the business, which is disadvantageous. Additionally, raising metropolis for business expansion may be difficult.Partnership is a business structure formed by 2 or more individuals. A partnership may come in two forms general and unlimited liability. L imited liability partnership is that which protects owners from liabilities arising out of the business failure. In this regard, in case a business fails, limited liability partners are only liable to the creditors to the extent of the capital contributed. This implies that creditors cannot claim the private properties of the partners in case of business failure, which is advantageous. Secondly, partnerships are advantageous in that management is shared among all partners. Thirdly, partners are only taxed personal earnings. Additionally, partnerships are advantageous since it is easy to raise capital for business expansion as each member ploughs in capital in the business. Partnerships are, however, disadvantageous since profits are shared among partners. Secondly, decision making might be time consuming due to differences in opinions among partners (Films for Humanities & Sciences, 2011).The moving-picture show also discusses quite a number of corporate structures, including gener al corporations, subchapter S