Forms of Business Organization

Forms of Business Organization - Forms of Business...

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Forms of Business Organization Suppose you graduate with a marketing degree and open your own marketing agency. One of your initial decisions is what organizational form your business will have. You have three choices—sole proprietorship, partnership, or corporation. You will probably choose the sole proprietorship form for your marketing agency. A business owned by one person is a sole proprietorship . It is simple to set up and gives you control over the business. Small owner-operated businesses such as barber shops, law offices, and auto repair shops are often sole proprietorships, as are farms and small retail stores. Another possibility is for you to join forces with other individuals to form a partnership. A business owned by two or more persons associated as partners is a partnership . Partnerships often are formed because one individual does not have enough economic resources to initiate or expand the business. Sometimes partners bring unique skills or resources to the partnership. You and your partners should formalize your duties and contributions in a written partnership
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This document was uploaded on 11/03/2011 for the course ACCOUNTING ac 201 at Montgomery.

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Forms of Business Organization - Forms of Business...

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