To: Tom Taylor, VP of Sales
From: Tyler Rhyne, Senior Sales Associate
Date: October 12, 2014
Subject: Different types of Business Organizations
Four Different types of Business Organizations
There are many advantages and disadvantages of Business Organizations. Here we will seek out the advantages and disadvantages of Sole Proprietorship’s, Partnerships, Corporations, and cooperative Business organizations. The information provided will also give you an insight on exactly what each Business Organization does and how it works and fits in Business structure.
A lot of businesses start as sole proprietorships. There is typically one person who usually has day-to-day responsibility for running the business and that owns the firms. The Sole proprietors typically own all of the assets of the business and the profits made from it. Sole proprietorship’s also take complete responsibility for any of the liabilities or debts. The advantages of Sole proprietorship’s are that they are: The Easiest and the most inexpensive of Business organizations and ownership. Sole proprietors are in complete control of their business and, within the boundaries of the law; make a decision when they see the time to do so. Another advantage of Sole Proprietorship’s is Profits and revenues from the business go straight to the owner’s Tax return. Another big advantage of a sole proprietor Business Organization is that the Business is easy to dissolve or get rid of if needed. As there are many advantages of a Sole Proprietorship Business Organization, there are many disadvantages as well. The disadvantages include: Sole proprietors have unlimited liability and are responsible for all liabilities and debts, putting their personal assets and business at risk. Also sole proprietorships could be at a disadvantage in raising funds and are limited to using the funds from personal savings from the business and/or consumer loans. Sole proprietorships may also have a hard...
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