Likewise more labor more insight and greater

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Likewise, more labor, more insight and greater efficiency (through economy of scale) may exist with the partnership, than with the sole proprietorship. The burden of raising the necessary capital and the labor/services to be produced is alleviated by the number of persons available (partners) that conduct the business. Obviously, all of these advantages are presumed. It is possible that all, some or none of these advantages (over a sole proprietorship) may materialize in a particular partnership. In comparison to the corporation, the partnership offers a smaller decision-making unit along with the potential to participate in a greater percentage of profit (fewer investors participate in contributing capital in a typical partnership compared to the typical corporation). Further, the state's administrative burdens required for the corporation are very much more involved than that of the partnership. Finally, taxation issues usually make partnerships preferable to the corporate entity inasmuch as the partnership does not bear the burden of dual taxation that occurs with the corporation. Corporations are the largest and most complicated of all of the business entities. A corporation is a legal fiction that allows a group of investors (perhaps thousands, or millions) to partake of a business interest of a single entity (the corporation). The two greatest advantages that the corporation holds over the sole proprietorship and partnership lies with the limited liability of corporate stock ownership as well as the potential to have vast numbers of investors, creating huge investments of capital and labor. In fact, it is certain that many business undertakings have capital requirements so large that it would be impossible otherwise to amass the necessary monies and resources to initiate such businesses, especially with regard to the modern multi- national corporation, where business interests and concerns may exist in any portion of the world. Liability limitations are a fundamental advantage with the corporation. The limited liability of the individual investor is identical to the stock share holdings. Individual investors risk only their investment made toward the purchase of their stock holdings, no more. In exchange, stock holders relinquish the day to day control of the business to the corporation's officers (who are chosen by the board of directors). The board of directors are chosen by the shareholders, so individual shareholders have only indirect influence over the day to day operations of the company. This lack of direct influence is a major disadvantage to the individual stockholder,
except in one instance; if an individual stockholder happens to own 51% of the stock, then that stock holder becomes the sole decision maker of the corporation. All decisions about choice of board of directors as well as choice of corporate officers will lie in the hands of the single majority stockholder. Putting together the legal formation of the corporate entity is the most complicated and varied of

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