Sole Proprietorship vs. General Partnership vs. Corporation :: essays research papers

A sole proprietorship is a face of billet that is owned and operated by one person who is responsible for each the debts. Forming the business is re wholey easy to start off with. Also the proprietor receives all the pay from the business and is his or her own boss. The down lieu to owning a sole proprietor business of your own is it is really herculean to get down sources for funding the business for it to grow and expand. An example of a topical anaesthetic proprietor business is Marthas Kitchen. Marthas kitchen is a really venial restaurant on the outskirts of town. Martha chose to open a diner at her localization of function because it is joined with a gas station and it is in a unprecedented location for a restaurant business. Marthas kitchen is open from 530 a.m. to 1100 p.m. She serves the best peach cobbler around. A general union is when two or more persons decide to sh are the responsibility of run a business together. The partners are also equally responsible for all the company debts incurred by each partner. The combined partners in the business stand the business to grow very easy because it is very easy to find sources for funding and investors. The biggest disadvantage that a general partnership has is the difficulty of transferring willpower or selling out because of having the consent of the other partners. An example of a local general partnership is Rest My Friend Lawn Care. The lawn care business originated as a sole proprietor but now it is a family business with several partners. Blake, Larry, and Tracy chose this type of business because they were able to invest in the business and to this day they are making a great profit out of the business. Corporations are the biggest type of business out of all three. Corporations are considered to be separate from the owners and they are liable for their own debts. When investors invest in a business they are held liable for only what they invest in the company in event of failure.