Professor Cho BUS 170 29 January, 2009 Assignment 1 1.1) The Three principal forms of business organization include: Proprietorship, Partnership, and Corporations. The advantages of proprietorships are that they are easy and inexpensive to form, they have less government regulations than larger companies, and they are taxed like individuals, which mean that their earnings are taxed only once. The disadvantages are that they have unlimited personal liability for business debts, the business ends when the owner ceases or doesn’t continue the business, ownership transfer is difficult, difficult to obtain large sums of capital. A partnership is also easy to create and inexpensive, it has few government regulations; it is also taxed like an individual. The disadvantages are similar to a proprietorship where the owners have unlimited personal liability, life of the organization is limited, transfer of ownership is difficult, and raising large sum of capital is difficult. The advantages of a corporation is that it can have unlimited life, offers its owners
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This note was uploaded on 09/08/2010 for the course BUS 170 at San Jose State.