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Form of Business Organization (Partnership (There must be an agreement…
Form of Business Organization
Sole Proprietorship
Owned by one individual
Its income is not subject to a business income tax
Easy and low cost of organization
Unlimited Liability
No legal status of the business
Flexibility
Limited life
Commonly use by small business
Partnership
There must be an agreement between the parties concerned to form partnership
Owned by two or more individuals to carry on the business
Sharing of profit and loss
Unimited liabilities
It has no separate entity apart from its members
No partner has the right to transfer or sell their share of interest to any firm or individual without the consent of any partner
each partner has rights to participate in the management by law
Legal status
Limited life
Corporation
Seperate and distinct from its owner
Can own stock in another corportaion
Limited laibility
Unlimited life
Easy to transfer ownership
Easy to get sources of capital
Tax liability seperation