BUS 393 Week 12 Business Organizations

Forms of Business

100

This business form is the simplest and most basic way of carrying on a business

Sole proprietorship

200

In this business form, the owner fully owns and operates the business and assumes all legal and tax liabilities

Sole proprietorship

300

This type of partnership includes at least one general partner and one partner whose liability is limited to their investment

Limited partnership

400

In this type of business organization, shareholders are the owners but are distinct from the entity itself, which has its own legal identity

Corporation

500

This business form is composed of professionals such as lawyers or accountants, where partners are only liable for their own professional negligence

Limited liability partnership (LLP)

Roles and Relationships

100

This role involves being responsible for the day-to-day operations of a corporation and reporting to the board of directors

Officer

200

A franchise agreement involves these two roles, where one operates the business and the other provides the name, methods, and products

The franchisee and franchisor

300

In a general partnership, this type of liability means partners are responsible for debts both jointly and individually

Joint and several liability

400

This relationship allows a principal to delegate responsibility to an agent, who binds the principal in dealings with third parties

Agency relationship

500

A business that operates temporarily to complete a specific project is known as this type of relationship

Joint venture

Advantages and Disadvantages

100

The greatest advantage of a sole proprietorship is that the owner retains this over the business

Complete control

200

The primary disadvantage of general partnerships and sole proprietorships is this type of liability

Unlimited liability

300

Corporations offer this major advantage, allowing shareholders to avoid personal liability for the corporation's debts

Limited liability

400

One disadvantage of corporations is that ownership and this aspect of the business are often separate

Management

500

This disadvantage arises in partnerships when there is no written agreement, causing statutory presumptions to govern the relationship

Lack of clarity in roles and responsibilities