What Type Of Business Ownership - nothing more because they...

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Which Type of Business Ownership? Business ownerships, between corporations, sole proprietorships, and partnerships each have their own individual advantages and disadvantages that are more preferable to one type of company or business model in comparison to another. The biggest advantage of a corporation is the limited liability, due to the fact that shareholders (owners) are not responsible for corporate debts and cannot lose their own personal assets if debts cannot be paid. Sole proprietorships and partnerships both involve the business owners risking their own assets in the event that the business is unable to pay off their debts and goes into bankruptcy. Corporations are also able to raise a greater deal of funds and income through the issuing of shares to shareholders. Shareholders are also only capable of losing the amount that they invested into the company but
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Unformatted text preview: nothing more because they are not responsible for the company’s debts. Both of these advantages, limited liability and ease of raising funds makes corporations extremely attractive to many business owners including myself. My idea for a business is to open an agricultural manufacturing plant in Indonesia. Indonesia is a third world country that relies on a great deal of agriculture in the economy in order to feed their low income population. With basic necessities such as food and water becoming so valuable, an agricultural manufacturer that is designed under a corporate ownership would be able to provide me with the security of only losing the maximum of what I invested while allowing me to reap the benefits of shareholder investments....
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