TYPES

OF

BUSINESS ORGANIZATION

THESE ARE THE BUSINESSES OWNED AND OPERATED BY INDIVIDUALS.THESE COME IN THE FORM OF NEIGHBORHOOD SHOPS OR SMALL STORES USUALLY IN THE VICINITY OF VILLAGES OR LOCAL AREAS.

THE MAIN ADVANTAGES OF SOLE PROPRIETORSHIP IS THAT THE OWNER HAS FULL CONTROL OVER HIS BUSINESS, AND CAN DECIDE ON ALL ITS ASPECTS.

ON THE OTHER HAND, THE OWNER IS LIABLE FOR ALL THE LOSSES AND DAMAGES THAT MAY INCURRED BY THE BUSINESS, INCLUDE NOT HAVING ENOUGH FUNDS TO EXPAND THE BUSINESS.

IT IS CONSIST OF TWO MORE INDIVIDUALS THAT COMBINE THEIR TALENTS AND ABILITIES TO FORM AND OPERATE A BUSINESS.

ONE OF THE ADVANTAGES OF A PARTNERSHIP IS THAT IT IS STILL A FAIRLY SMALL BUSINESS FIRM, WHICH IS STILL QUITE EASY TO ORGANIZE AND OPERATE.

THERE IS ALSO UNLIMITED LIABILITY FOR THE PARTNERS, AND EVEN THEIR PERSONAL ASSETS MAY BE AFFECTED.

CORPORATIONS

IT IS A LEGAL ENTITY THAT EXIST UNDER THE LAWS OF COUNTRIES AND HAVE RIGHT TO PRODUCE AND DISTRIBUTE GOODS AND SERVICES AND ENTER INTO CONTRACT AND AGREEMENT.

Advantages of

Corporation

1) IT IS CONSIDERED AS A LEGAL ENTITY AND MAY CONDUCT BUSINESS ON ITS OWN.THUS, A CERTAIN CORPORATION MAY ENTER INTO A CONTRACT WITH ANOTHER PARTY.

2) STOCKHOLDERS OF CORPORATIONS HAVE LIMITED LIABILITY, THAT IS, THEY CANNOT BE HELD RESPONSIBLE FOR LOSSES, DEBTS OR DAMAGES INCURRED BY THE CORPORATION FOR MORE THAN THE TOTAL AMOUNT OF THE SHARES THEY OWN.

3) CORPORATIONS ARE EFFICIENT IN RAISING MONEY AND CAPITAL FOR ITS OPERATIONS BECAUSE OF CERTAIN STRATEGIES PROVIDED TO IT BY LAW.

4) THE FINANCIAL CAPABILITY OF CORPORATIONS, MANAGE AND WORK FOR THEM, ENABLES THESE COMPANIES TO PROVIDE NEW TECHNOLOGY AND MORE EFFICIENT PRODUCTION AND DISTRIBUTION,AS A RESULT, MORE PROFIT FOR THE COMPANIES AND THEIR STOCKHOLDERS.

5) A CORPORATION HAS PERMANENCE THAT IS UNIQUE FOR ITS PERSONALITY, THIS IS BECAUSE ITS OWNERS MAY COME AND GO, LEAVE OR DIE, BUT THE CORPORATION WILL CONTINUE TO EXIST AS LONG AS IT IS RECOGNIZED BY THE GOVERNMENT.

6) CORPORATIONS ARE USUALLY MANAGED BY EXPERT, BECAUSE OF THIS, DECISIONS ARE MADE MORE WISELY AS MAJORITY APPROVAL IS NEEDED BEFORE CERTAIN PROJECTS OR POLOCIES CAN BE IMPLEMENTED.

DISADVANTAGES OF CORPORATIONS

1) CORPORATION USUALLY ENCOUNTER TECHNICAL RED TAPE AND LEGAL PROBLEMS IN GETTING A CORPORATE PERSONALITY OR LEGAL STATUS IN A PARTICULAR TERRITORY.

2)SOME DISHONEST INDIVIDUALS USE THE LEGAL AND FINANCIAL STRUCTURES OF A CORPORATION TO SERVE AS A FRONT FOR THEIR ILLEGAL ACTIVITIES.

3) GOVERNMENT HARASSMENT AND UNSTABLE POLITICAL CONDITIONS CAN SOMETIMES SEVERELY AFFECT THE PERFORMANCE OF A CORPORATION.

Thank you!!