Fin 561 Functional Roles
“Functional Roles of Managers”
FIN 561
05 June 2012
Business Structures
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 …show more content…
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 easily and readily than partnerships and sole proprietorships and often have access to more starting capital. Corporations are more complex than other business structures because they tend to have costly administrative fees and complex tax and legal requirements. (Corporate Business Structure,
FIN 561
05 June 2012
Business Structures
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 …show more content…
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 easily and readily than partnerships and sole proprietorships and often have access to more starting capital. Corporations are more complex than other business structures because they tend to have costly administrative fees and complex tax and legal requirements. (Corporate Business Structure,