ACC220WK2CKPT (2) - revenue and profit If one corporation...

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Explain the differences between a proprietorship, a partnership, and a corporation. The differences are Proprietorship is a business that is owned by one person who handles everything with regards to finances, taxes, paperwork etc. This is the one person and only person that have control of the company. A Partnership is a business that has two or more business owners that run the company. In this type of business they handle finances, decisions, taxes, bills, paperwork together as a team. A Corporation is a business that has legal ownership to each of its stock holders. In a corporation it’s easier to pass ownership on to the next. Making team decisions about anything that goes on in the office budgeting, finances, taxes, paperwork etc. In a corporation the employee rate can go anywhere from 20 all the way to 1,000 people or even bigger. Why would an entrepreneur want to choose one over the other? An Entrepreneur would choose one over the other for a few reasons like stability of
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Unformatted text preview: revenue and profit. If one corporation is better to go with because their revenue and profits are good, the Entrepreneur will offer their products and services to that company. Entrepreneurs don’t want to take a risk with a corporation that their revenues and profits are on shaky ground. They like to see that a goal is being met and is profitable for the company. The entrepreneur is a very a hard worker and puts in long hours to get their job done right, but they are the same as anyone else they want to become profitable. If you were starting a new business, which would you choose? Why? I would go with a Proprietorship because I will be the only one in control . If the Proprietorship is successful with a good chance of becoming bigger, then I can always add on new partners and stockholders. If the proprietorship should fail it will be easier for me to close my doors and sell the stocks....
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