Task 310-1.2-01-06

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Organizational Forms

Taking into consideration the forms of business such as sole proprietorship, partnership, limited liability partnership, Limited Liability Company, S corporation, franchise, and corporate form, the scenarios of each form of business is listed below. In addition, the scenarios will allow each individual to further understand the worth of the individual business forms. Sole proprietorship is the most common form of business, instating this proprietorships are operated and owned by one person. The reason proprietorship is so common is because this form of business is easy. Many individuals that form this type of business are also known as an entrepreneur. The owner of a sole proprietorship has unlimited liability. For example the individual who wanted to open up this type of business want to open a landscaping company. This business can easily be started and, the owner will have complete control over the entire business. This business requires little to no capital to operate, however this business requires clientele and advertising to be successful. Sole proprietorship is the most adequate form of business for this type of operation. A partnership is an agreement between friends or investors to open or assemble a business. The individuals within the partnership agree by signing the agreement that is registered to continue to supply capital, knowledge and skills as well as share in the profits of the company. Partnerships require more than one sole owner. By having multiple owners this will allow the organization or business to attain investor for support of the business and or individuals who are deemed as qualified. A scenario for a partnership may be a group of best friends who each see themselves as business owners in the future. The friends then decide to open up Decorative Cupcakes. Decorative cupcakes specialize in flavors, unique décor, event cakes etc. Each individual within the partnership is responsible; the quality of work...
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