Differences Between Sole Proprietorship, Partnership, And...

1. Discuss in details similarities and differences between sole proprietorship, partnership, and corporation? a. Differences: A sole proprietorship is a business that has a single owner who is responsible for making decisions for the company. A partnership consists of two or more individuals who share the responsibility of running the company. A corporation is one of the most recognizable business structures and has a separate identity from the owners of the company. One or more owners may participate as shareholders of a corporation. b. Similarities: Characteristics Sole proprietorship Partnership Corporation Formation Easy to form Need to fill documentation Need to fill documentation Ownership Owner Partner Shareholder Liabilities Unlimited liabilities Unlimited liabilities Members are not liable for the debt of the company 2. Explain the following corporate finance terms: Money market: One of the sections of a financial market where securities and financial instruments with short-term maturities are traded is called the money market. Capital market: Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. Primary market: The primary market is the part of the capital market that deals with issuing of new securities. Companies, governments or public sector institutions can obtain funds through the sale of a new stock or bond issues through primary market. Secondary market: A market where investors purchaseShow MoreRelatedEssay On Business Structure1350 Words   |  6 Pagescompany structures Sole Proprietorship, General Partnership, Limited Partnership, S/C Corporation, and Limited Liability. Which have not honored the contract and are at risk for legal actions. The various liabilities between each owner will be discussed. Which will analyze ways to limit liability and display my future business structure. Now, let’s start with A sole proprietorship which is a business owned by only one person. According to Sole Proprietorship Taxes, a sole proprietorship is the easiestRead MoreTaking a Look at Different Forms of Business1394 Words   |  6 Pagestheir situation. Sole Proprietorship Sole proprietorships are the simplest and most common form of business. This form of business is generally owned by a single owner. The advantages of a sole proprietorships are that they are easy to setup and the owner has total autonomy of day-to-day operations of the business. There are some disadvantages to forming a business as a sole proprietor. As the sole owner, the business is limited on capital and resources for running the business. A sole proprietor isRead MoreBusiness Impact Of Business On Business854 Words   |  4 Pagesknow as sole proprietorship, partnership, and corporation. Sole proprietorship is a business structure in which one can operate and work on its own. It is the most straightforward and fastest approach to set up an operation. Many sole owners do business under their own name and many others like to use fictitious names such as Steve s Hair Salon. The fictitious name does not create a separate entity from the sole proprietor. It is just an appealing name given to the customers. Becoming a sole proprietorRead MoreThe Business Structures Of The United States1729 Words   |  7 Pagesmarket economy are sole proprietorship, partnership, corporation, and Limited Liability Company. These business structures are the most popular business structures in the United States due to their great amount of success, but they all have their own positive and negative qualities. When founding a new business, there is always one question that arises: Which business structure is the most efficient? The oldest and basic business structure of all time is the sole proprietorship structure. It is alsoRead MoreLegal Forms of Business1415 Words   |  6 Pagespractical considerations. To understand more about the different forms of business, it is important to consider the right structure for the business (Legal Forms, 2006). Sole Proprietorship A sole proprietorship simply means a business with one owner. With many forms of organizations out there, this is the most common. In a sole proprietorship, a business organization is not separate from its owner, just under a business name in which the owner represents him or herself to the public (Lee, 2011). ScenarioRead MoreDifferent Forms of Business: Exploring Definitions and Scenarios1029 Words   |  4 Pagesof these differences, as many individuals immediately understand upon making purchases that buying groceries from a fall family-operated grocery store is far different than purchasing a new television from a nationally-operated chain. While many people understand that certain differences between these types of businesses exist, it is far less common for an individual to understand the specifics. The world of business is vast and varying, containing categories such as the sole proprietorship, the partnershipRead MoreBusiness Impact Of Business On Business858 Words   |  4 Pagesknow as sole proprietorship, partnership, and corporation. Sole proprietorship is a business structure in which one can operate and work on its own. It is the most straightforward and fastest approach to set up an operation. Many sole owners do business under their own name and many others like to use fictitious names such as Steve s Hair Salon. The fictitious name does not create a separate entity from the sole proprietor. It is just an appealing name given to the customers. Becoming a sole proprietorRead MoreEssay Purpose Of Financial Statements1020 Words   |  5 PagesStatements of businesses from different sectors of the economy A  partnership  is an arrangement in which parties agree to cooperate to advance their mutual interests. A business organization in which two or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business. CHARACTERISTICS OF PARTNERSHIPS The characteristics of partnerships are different from the sole proprietorships already studied in basic accounting. Some of the more importantRead MoreFinance Management Overview Essay examples1186 Words   |  5 Pagesorganize as a corporation rather than as a sole proprietorship or a partnership? a. Corporations generally face fewer regulations. b. Corporations generally face lower taxes. c. Corporations generally find it easier to raise capital. d. Corporations enjoy unlimited liability. e. Statements c and d are correct. Firm organization Answer: a [ii]. Which of the following statements is most correct? a. One advantage of forming a corporation is that you haveRead MoreSmall Business Idea1521 Words   |  7 Pagessuited for his or her product or service. There has to be consideration with legal, tax, accounting, and other implications when selecting from the four business types. This paper will explore the advantages and disadvantages of sole proprietorship, corporation, and partnership. This paper will attempt to discuss account financial statements applicable to various forms of business, consequences associated with each form of business (e.g. legal and tax implications, and accounting implications, such as