Sole Prope.

2 Pages 524 Words

If I were to start a business organization, I would organize it as a sole proprietor. Sole proprietorship is defined as a business owned or controlled by one individual and is the most common of all US businesses. I would choose this form of business because I am an independent person who would have a hard time trusting another person with my ideas and profits. I also feel that I have enough logic to follow correct advice while following my instincts, allowing me to provide a product that would be very valuable and not simply a trend. Other forms of business designs include partnership and corporations. Partnership is an ownership of a business by two of more people. By definition, a corporation is an artificial being, created by law, with legal entity. What that economic jargon really means is that a corporation is when a number of corporate shareholders come together to own and oversee many aspects of the company.
There are many advantages and disadvantages to sole proprietorship. A sole proprietor has a lot of freedom in the sense of decision making. They also have a lack of restrictions [can follow their own instincts when it comes to business concerns, such as amount of production] and are able to keep all profits that come in. However, a sole proprietor has full responsibility for all the goes wrong in the company (yet has personal satisfaction for anything that goes right) and has unlimited liability. Also, a company run by one has a limited size and a limited life.
Partnership has many positive aspects: there is a better chance to raise capital and more growth potential. Also, with two, decision making improves for it can be taken with two different viewpoints. There is also a better chance for expansion. However, there are still drawbacks: Disagreements can arise and there is still unlimited liability. Furthermore, a business by partnership has a limited life with a limited size.
Corporations are seemin...