The Ownership Structure Of a Company
Sole Proprietorships:
A form of enterprise established, owned, and operated by one person.
- Advantages:
- It is easy to establish and less expensive.
- All profits go to the owner.
- Have direct control.
- Free from government regulation.
- There is no particular tax burden.
- It is easy to dismantle the business.
- Disadvantages:
- The burden of responsibility is high.
- It takes work to secure funds.
- Management experience could be more substantial
- It isn't easy to secure an excellent workforce.
- You have to sacrifice your time.
- The company's lifespan is unstable.
- All losses are the sole responsibility of the owner.
Partnership:
A form of enterprise established, owned, and operated by more than one person.
- Advantages:
- Easy to establish
- Easy to secure capital
- Variety of techniques and expertise
- You can secure it
- Be flexible
- No corporate tax
- Relatively free from government regulation
- Be free
- Disadvantages:
- Unlimited liability
- Possible dispute between partners
- Distribution of profits
Corporations:
As a corporation with legal authority apart from the investor, the investor is not personally liable for the company's debt
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