An Explanation of Different Business Types Essay

An Explanation of Different Business Types Essay

Length: 1232 words (3.5 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

A sole proprietorship is a business that is solely ran by one person. “According to data from 2003, there were more than 17.5 million proprietorships operating in the U.S. and those generated $969 billion in revenues” (Hodgetts & Kuratko, 2008). Establishing a sole proprietorship is easy if an owner uses one’s own name or can use a trade name by filing with the city of business.
Financial advantages to a sole proprietorship include all the profits belong to the owner of the business minus taxes, social security and Medicare paid out. Some proprietors have higher credit ratings because both the business and personal assets stand behind them. Lack of restrictions and freedom to run your own business and for some may need to get licensing from the state. Having a sole proprietorship has secrecy on operation sales, financial strengths, and profit margins. Owing your own business brings a lot of personal satisfaction and the success of your business is the amount you contribute to.
Disadvantages to a sole proprietorship include unlimited liability and the debt incurred is the owner’s responsibility. “Creditors have a claim for these debts and can exercise it against both the business assets and personal assets of the proprietor” (Hodgetts & Kuratko, 2008). Since a business’s tend to be smaller for one owner the amount of capital is limited to be raised for operations. Most banks only lend 50% of the business value. Limited life of the proprietorship depends on the individual financial aspect, dies, goes to jail, or chooses to end the business presents risk.
“A partnership, as defined by the Uniform Partnership Act (UPA), is an association of two or more persons to carry on as co-owners of a business for profit” (Hodg...


... middle of paper ...


...ctivity include “not losing irreplaceable hours of your lifetime to meetings; avoiding the politics of a large and often cutthroat workplace, spending time with family or pets verse working for the business” (Coffey, 2008). A plan of attack would need to be put in place, work space should be divided, installing separate phone lines would help keep work and personal separate, whose home or all homes being used for the three proprietors, as well as insurance for all partners.



Works Cited

Coffey, L. T. (2008, October 1). Solo Act-Setting up a Home Based Business. Retrieved April 12, 2011, from www.today.msnbc.msn.com: http://today.msnbc.msn.com/id/26976151/ns/today-money/
Hodgetts, R. M., & Kuratko, D. F. (2008). Small Business Management. In R. M. Hodgetts, & D. F. Kuratko, Small Business Management (pp. 158,159,161,164,168,177). Hoboken: John Wiley & Sons.


Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Business Plan For M & J Essay

- Business Plan Portfolio M&J is a somewhat informal organization in which a number of friends and family members pitch in to do whatever it takes to make the business successful. Overall, this has worked well, but you know that sometimes there is some serious miscommunication resulting from the lack of clear authority. The lines between the marketing, shipping, finance, main office, and sales departments are fuzzy at best. There are people working in multiple departments who have no clear accountability to any one manager....   [tags: Management, Marketing, Cosmetics, Business]

Better Essays
991 words (2.8 pages)

Types Of Research Essay

- Research is done everyday. Research is used in the many different situations managers encounter everyday. Research is part of the problem-solving manager do to make decisions. Research is defined as “the process of finding solutions to problem after thorough study and analysis of the situational factor” (Sekaran, p3, 2003). Managers use research for daily operational problem as well as bigger problems that can require hired research consultants. Managers who use research are able to communicate with the hired consultants because they understand the process of inquiry, investigation, examination, and explanation....   [tags: Research Business management]

Better Essays
1401 words (4 pages)

Essay on Various Types Of Buyers And Sellers

- 1. What are the different types of buyers and sellers that participate in business-to-business (B2B) markets. 2. List the steps in the B2B buying process. 3. Describe the value added of personal selling. 4. What are the steps in the personal selling process. (Briefly describe each one.) 5. What are the ethical and legal issues in personal selling. 1. All firms want to divide the market into groups of customers with different needs, wants, or characteristics who therefore might appreciate products or services geared especially toward them....   [tags: Sales, Marketing, Selling, Customer service]

Better Essays
998 words (2.9 pages)

Types of Advertising used by Businesses Essay

- Advertising, this is a form of marketing communication. It’s the promotion of goods and services through impersonal media; it is used by the businesses to call the public’s attention and to convince, persuade and encourage them to buy their products. Advertising also gives information about the products and services that is being offered. Sometimes, business promotes their product/services in a boastful or ostentatious way. This is also the profession of planning, designing, and writing advertisements....   [tags: marketing, communication, Media]

Better Essays
1888 words (5.4 pages)

Essay about Explanation of Class Stereotypes

- An analysis class can be classified into one of the three stereotypes, which are entity, boundary or control. An entity class is a class that the primary focus is to hold the data. Meanwhile, the boundary class is a class that the objects are used by the actors to communicate with the system. On the other hand, a control class is a class which provides coordinating behavior in the system. (Joey F. George, 2004) As mentioned, the class of the entity class focus on holding the data. The objects hold most of the data of the application....   [tags: interview, boundary class, entity class, WOBPS]

Better Essays
1447 words (4.1 pages)

The Different Styles Of Management Essay

- This easy will discus different styles of management with explanation to there key features. Along with examples of organisations and how styles of management are applied as well as the factors which influence the styles. It will discus theory’s like Mintzbergs five functions and theory x along with comparing autocratic and democratic styles of management. Management is about bringing organisations or workers together to achieve the aims and objectives of the business. Management must do this using its existing resources in an efficient and effect way to benefit the goals....   [tags: Management, ManaGeR, Control, Organization]

Better Essays
1078 words (3.1 pages)

Essay about Leadership Style Of A Business Context

- Introduction This essay is going to outline the different academic perspectives to support the argument that heroic leadership in a business context, which emerged towards the end of the 19th century, has led to unfair successor announcements and an unhealthy biased decision-making - outcome attribution ratio resulting in unfair, unnatural and useless business leadership environments in today’s society. Nonetheless, today’s leadership delivers a foundation to eventually transition to a more natural, inclusive and useful form of it....   [tags: Leadership, Decision making, Management]

Better Essays
1616 words (4.6 pages)

Essay about Cooperative and International Business Strategies

- Strategic Management 1. What most distinguishes domestic and global market. And why. Domestic market: Domestic market is the financial market which targets a single market. This kind of market deals with only one set of competitive, economic, and market issues. Similarly it faces only one set of customers even though a company has a different segments in the market. Domestic market is also known as an internal market and domestic trade. This market has a very limited scope because the market is within country’s own borders....   [tags: strategic management]

Better Essays
1556 words (4.4 pages)

Essay about An Investigation into Business Communication

- An Investigation into Business Communication Introduction: My name is Kalpesh Magudia, I have been appointed as a consultant to a medium sized manufacturing company, employing 120 people. The company is called KM Ltd. Previously production and administration has been located in central London, but a new production site has been purchased 50 miles away from London, and has meant that the company and its personnel must be re-organised. The Board of Directors, Managing Director, Finance Director and Administration Director Will now work from the London Head Office....   [tags: Papers]

Free Essays
4867 words (13.9 pages)

Essay on Different Types Of Business Structures

- When forming a business, there are many different types of Business Structures you can choose for your company. These business structure types consist of a Sole proprietorship, Limited Liability Company (LLC), corporation, cooperative, partnership, and S Corporation. The few types of business structures that I believe are most significant are an LLC, Partnership, and an S Corporation. There are many similarities and differenced between these three business structures and numerous advantages and disadvantages to each....   [tags: Corporation, Limited liability company]

Better Essays
1593 words (4.6 pages)