“Functional Roles of Managers”
05 June 2012
In the United State, there are a variety of business and organizational structures that are currently operating. Each structure possesses number of advantages and disadvantages that must be considered, whether in a sole proprietorship or corporation. The purpose of this short essay is to identify several types of business structures and list the pros and cons of each. Sole Proprietorship is a company owned and sometimes operated by a single individual. These company types can range from small “mom and pop” retail stores to inventors seeking to sell their products online. The pros of this business structure are that as the owner you have independence, control and overall freedom to decide the direction of your organization. Also, it is fairly easy to establish a sole proprietorship, and the process of running them is relatively simple. However, shares or interests cannot be sold in this business structure to generate cash flow, and the owner is solely liable for all of the debts and legal suits of the business. (Your Business Structure, 2011) Partnerships are very similar to sole proprietorship, except more than one person is involved. Two or more people come together to work at a given business and share in the profits (or losses) or that business. Like sole proprietorship, a partnership is relatively easy to set up and doesn't have to pay the sort of taxes that larger corporations do. However, the partners themselves are responsible for business losses and liabilities, and partnerships founded on informal agreements may run into interpersonal problems when the company struggles. (Your Business Structure,2011) Corporations are companies that are controlled by a group of people who own shares in the company. The shareholders dictate who runs the company and how it conducts business and receives profits based on the shares of stock that they own. Corporations can raise funds more...
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