Legal Social and Economic Environments of Business

Legal Social and Economic Environments of Business -...

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BUSSINESS DECISIONS Legal Social and Economic Environments of Business Joe White American InterContinental University
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BUSSINESS DECISIONS There are three different types of business decisions I can take while trying to market my new appliance. They are sole proprietorship, partnership and corporation. I will discuss the three business decisions and there disadvantages and advantages. Which 1 I believe will help me prosper in my new business adventure. The reason I believe the one I choose is the best for my business opportunity. A sole proprietorship also known as a sole trader or simply proprietorship is a type of business entity which is owned and run by one individual and where there is no legal distinction between the owner and the business. All profits and all losses accrue to the owner and subject to taxation. Simply put, your business is a sole proprietorship if you don't create a separate legal entity for it. This is true whether you operate it in your own name, or under a trade name. There a few advantages in a sole proprietor it has complete control and decision-making power over the business. Sale or transfer can take place at the discretion of the sole proprietor. There are no corporate tax payments or minimal legal costs to forming a sole proprietorship. A sole proprietorship has disadvantages also it may have a hard time attracting high- caliber employees, or those that are motivated by the opportunity to own a part of the business. It also may be at a disadvantage in raising funds and are often limited to using funds from personal savings or consumer loans. The sole proprietor of the business can be held personally liable for the debts and obligations of the business. Additionally, this risk extends to any liabilities incurred
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This note was uploaded on 04/07/2011 for the course ECON 101 taught by Professor Sei during the Spring '11 term at American Academy of Art.

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Legal Social and Economic Environments of Business -...

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