Unit 3 Business Environment Analysis

| A sole proprietorship is easy to create; there is minimal creation cost and time.The single owner has autonomy in decision making; sole owner makes all decisions related to the business and has complete ownership of business’s finances.

Sole Proprietorship: A type of business that is owned by and run by one person with no legal difference between the business and the owner. It is easy to form with no cost or time to initiate. It gives the owner the ability to self-govern the business. There are drawbacks; only one owner can be established not allowing a partner. Also, unlimited liability puts the owner’s personal assets in jeopardy with the creditors.

Sole proprietorship is a business organization operated by one owner. For example, you start a landscaping business by yourself.

A partnership is defined under common law as a contractual relationship between two or more persons who join together to carry on a trade or business, each contributing money, property, labor, or skill, and with the expectation of sharing in the profits and losses.

A partnership is an arrangement between two or more groups, organizations or individuals who work together to achieve common aims or who have common interests.

The organizational forms a company might have as it evolves from a start-up to a major corporation are proprietorship, partnership, or corporation.

Sole Proprietorship is a business owned by one person, as distinguished from a partnership or

An entrepreneur who is willing to take risks in the process of being aggressive would be willing to even risk personal wealth and property, which would lead to greater success than entrepreneurs who were not as willing to take such risks.

Sole proprietorship: Is the simplest and most common business structure. There is no legal distinction between the proprietor and the business, which means it is autonomous. You are entitled to all profits and responsible for all your business's losses and liabilities.

General Partnership: Occurs when two or more individuals get together to operate a business with the intention of making profit. Each individual is a general partner of the business and all profits and losses are shared between the partners. General partnership agreements can be a written or verbal agreement.

Partnerships come in two categories, general and limited. With a general partnership, associates succeed the company and undertake accountability for the partnership's debts and other responsibilities. In a limited partnership, partners serve as only investors. The partners have no power over the company and they are not focused with the similar liabilities as general partners have. A general partnership would be easier to practice if two or more partners who strive to be vigorously convoluted in the company. One of the major advantages of a partnership is the tax treatment it entails. A partnership does not pay tax on its earnings but passes through any profits or losses to the individual partners. During tax season, the partnership has to file a tax return that accounts for its income and losses. Personal liability is a main distress if you use a general partnership to develop your

"What are the three basic forms of business ownership? What are the advantages and disadvantages to each?

Partnership is the relations which exists between partners carrying on a business in common with a view of profit, which means there must be some continuity or repetition of trading activities and working on behalf of each other. (James 2014, p. 506-507)

For many, the American dream involves owning a business and achieving financial stability. However, to achieve this American dream, one must create a business plan that involves the consideration of appropriate business structure. In the United States there are several business structures offered for consideration. Sole proprietorships, partnerships, corporations, and limited liability companies have their advantages and disadvantages. Any new business must evaluate the available business forms to determine which structure will be the most advantageous to the new business. The three most important aspects to determining a business structure are taxation, liability, and growth opportunities (capital mainly).

There are three different types of business structures. They are sole proprietorship, partnership, and corporation. Each has its own advantages and disadvantages.