A1: Question1: Sole proprietorship, partnership and corporation. Sole proprietorship Advantage: the cost of getting started. Partnership Advantage: the cost of getting started. Disadvantage: 1.unlimited liability 2. Limited life of the enterprise 3.difficulty of transferring ownership 4. Difficulty in raising cash Corporation Advantages: Limited liability, ease of ownership transfer, and perpetual succession Disadvantages: double taxation The sole proprietorship is the cheapest business to form. Question3: Shareholders own the company. Shareholders vote the board of directors, the board election management (shareholders, the board of directors and management); Agency relationship exists in the organization of companies is the main reason of the separation of ownership and control; In this case, the agency may produce (shareholders and management may be inconsistent because the target and make the management may seek to maximize their own or other people's interests, rather than the interests of shareholders to maximize).
- Fall '16
- Chief Executive