Small Business Vs Corporation Case Study

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Owning a Small Business Versus Corporation
In this paper, I’m going to be telling you the difference between a Small business and a corporation. These two have a lot in compared and a lot of difference. There are a lot of small business and corporation growing fast throughout the world. Both businesses take a lot to manage and you also must have the skill and the ability to do so. If it was easy, everybody would have some type of business growing in this world
Small Business
A small business are privately owned corporations, partnerships, or sole proprietorships that have fewer employees and/or less annual revenue than a regular-sized business or corporation. there are many different types of small business such as convenience store, small grocery stores, bakeries, or delicatessens. There are many different typed of ways of starting a business. There are also many types of advantages and disadvantage. (webopedia.com). In today’s world, you will …show more content…

Normally the corporations have many shareholders; they delegate the governance function to a body of persons called board of directors. The board of directors hires management to look after the day to day affairs of the corporation. The management is an agent and the owners are principal. It is quite possible that the management may act to further their own interests rather than the interest of the owners of the corporation. When this happens, it is called an agency problem. In case of corporations there is double taxation. First, the corporate income is taxed at a flat rate and then the dividends paid to the shareholders is taxed. (accountingexplained.com). Running a corporation can be stressful and it takes a lot of work. You must be bold and have good technto run

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