Question

what are the major forms of business organization? compare and contrast​

Answer 1

Answer:

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There are 4 main types of business organization: sole proprietorship, partnership, corporation, and Limited Liability Company, or LLC.

Answer 2

The organisations are Sole Proprietorships, partnerships, corporations and Limited Liability Companies.

• Sole Proprietorships

1. A single person owns these businesses and this person is in charge of managing the company's daily operations.
2. All of a business's assets and any earnings are owned by a sole proprietorship.
3. Additionally, they take full responsibility for all their obligations and debts.

• Partnerships

1. A single firm is owned by two or more persons.
2. The law does not discriminate between a corporation and its owners, similar to proprietorships.
3. Partners should have a written contract outlining procedures for making decisions, allocating earnings, and resolving conflicts.
4. There are also rules for admitting new partners, buying out existing partners, and dissolving the partnership if needed.

• Corporations

1. One that has been granted a charter by the state where its headquarters is located is regarded by law.
2. It is a distinct legal person, existing independently of its owners.
3. It has legal rights, including the ability to pay taxes, be sued, and sign contracts.
4. A corporation's shareholders are its true owners.

• Limited Liability Companies

1. The partnership's operational flexibility and limited liability characteristics are combined with a corporation's tax advantages.
2. In comparison to a general partnership, formation is more complicated and formal.
3. The lifespan is established when the formation documents are filed, and the owners are members.

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