"business may be owned by an individual or a group of persons." in the light of the above statement enliist different forms of business organizations and explain how they are different from each other.
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a)Sole proprietorship- Firms owned by individual who has day-to-day responsibility of running the business.
b)partnership-Two or more people share the responsibility of running a business.
c)Corporation-Chartered by the state in which it is headquartered, it is considered by the law to be a unique entity,separate and apart from those who own it.
d)Limited liability company-it is relatively new type of hybrid business structure that is now permissible in most state. It is designed to provide the limited liability features of a corporation and the tax efficiency and operational flexibility of partnership. Formation is more complex and formal than that of general partnership.
b)partnership-Two or more people share the responsibility of running a business.
c)Corporation-Chartered by the state in which it is headquartered, it is considered by the law to be a unique entity,separate and apart from those who own it.
d)Limited liability company-it is relatively new type of hybrid business structure that is now permissible in most state. It is designed to provide the limited liability features of a corporation and the tax efficiency and operational flexibility of partnership. Formation is more complex and formal than that of general partnership.
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There are three main types of business
sole proprietor ship: single owner, full profit owner, limited life time
Partnership: 2-5 owners, profit and investment is shared, longer life time
Corperate: 10-25 owners, high profit, double taxation
sole proprietor ship: single owner, full profit owner, limited life time
Partnership: 2-5 owners, profit and investment is shared, longer life time
Corperate: 10-25 owners, high profit, double taxation
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