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Options For Organizing Business (Types of Corporations (1 Domestic, 2…
Options For Organizing Business
Sole Proprieterships
Advantages
1 Ease and Cost of Formation
2 Secrecy
3 Distribution and lise of Profits
4 Flexibility and Control of the Business
5 Goverment Regulation
6 Taxation
7 Closing the Business
Disadvantages
1 unlimited liability
2 Limited source of Funds
3 Limited Skills
4 Lack of Continuity
5 Lack of Qualified
6 Taxation
Corporations
Advantages
1 Limited Liability
2 Ease of Transfer of Ownership
3 Perpetual Life
4 External Sources of Funds
5 Expansion Potential
Disadvantages
1 Double Taxation
2 Forming a Corporation
3 Disclosure of Information
4 Employee-Owner Separation
Trends in Business Ownerships
1
Merger
-two companies
combine to form a new company
2
Acquisition
- occurs
when one company
purchases another
usually by buying its stock
Types of Corporations
1 Domestic
2 Foreign
3 Alien
4 Private
5 Public
6 Quasi-Public
Non-Profit
Partnerships
General Partnership
Articles of Partnership
Limited Partnership
Advantages
1 Ease of Organization
2 Availability of Capital and Credit
3 Combined Knowlegde and Skills
4 Decision making
5 Regulatory controls
Disadvantages
1 Unlimited Liability
2 Business Responsibility
3 Life of Partnership
4 Distribution of Profits
5 Limited Sources of Funds