Business Organization Paper
Healthcare has drastically changed over the years in the United States. As our population is growing in size, a shortage of the number of health care professionals is also growing. Entrepreneurs have greatly benefited the world of health care by assisting with creating more jobs, producing products and services to assist and meet the growing needs of the population, and starting new business organizations to meet the needs of today’s economy. There are different forms of organizations and choosing the correct one is important, as it will affect the success or failure of the business. Define the Different Forms of Business Organizations
Sole proprietorships are an individually owned business where the individual is entitled to all of the profits and also responsible for all of its debts, liabilities, taxes, and claims that may be made toward the organization. Partnerships are businesses started by 2 or more individuals. In this form of business each individual is equally responsible for the liabilities, management, as well as entitled to a portion of the profits. With the different knowledge and skills each member brings to the business will increase the chance of success. Corporations are created by law and owned by shareholders. Rather than actual property, the owners own stock or interest. Through selling stock the corporation can raise the capital o help with establishing business and increase financial gain. According to SCORE Associations (2003), limited liability companies are a “new and flexible business organization of one or more owners that offers the advantages of liability protection with the simplicity of a partnership, i.e. partners are not liable for business debts” (Para. 3). Explain the Advantages of Each Form of Business Organization Sole proprietorships are the easiest to manage due to the nature of the business and it is also easy to close if needed.
Partnership business’s benefit by having shared...
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