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Business Organizations - Coggle Diagram
Business Organizations
Partnership
Comprises of 2 members at the minimum
Normal Partnerships has a maximum of 20 members
Professional partnerships can have a maximum of 50
Accounting
Law
Engineering
Medical
Characteristics that define a partnership
All members are associated
Includes Natural Persons
Include Artificial Persons
Must be running a business
A business can be under any trade, occupation, or profession
The intention of all partners in running the business must be common
The business must turn a profit
All assets and capital are contributed by partners
Profit and loss sharing is agreed upon by the partners
Partners are not liable for the debts or obligations of the company
Does not have much borrowing power
A partnership does requires registration by the partners
A partnership is dissolved immediately upon the death of a member
Financial Records are Private
Company
A legal entity all on its own
Can take legal action against other entities or people under its own name
Separate from its members
Companies must be registered in a lengthy process
Companies cannot be dissolved, except through legal process
Capital and assets all belong to the company, not to any of the members
There is no limit to how many members can be in a company
Members cannot be involved in management decisions
Members and management are separate
Has high borrowing power
Financial Records are Public
Sole Propietorship
All capital and assets is fully owned by the owner
Owner is able to borrow as much from the company as they want
Application of business does not require lengthy legal process
Able to use personal bank account
Able to use new business bank account
Fully run by one person
Financial Records are private