What is the best form of business organization?

There are three basic types of business organizations: sole proprietorships, partnerships and corporations. The best form would have to be the one most applicable and beneficial to an entrepreneurial individual. Since the question can’t be answered with a factual response, it is simply defense of opinion.

Given the three forms, I would have to pick partnership. It is the best form of business because of its managerial flexibility, its quickness to set up and division of labor as well as income. A sole proprietorship is simply too strenuous to be run by an individual efficiently enough to expand the business and increase profits. A corporation is too large to maintain and it is run by a board of strangers who haven’t been met or extensively researched.

A partnership can be run efficiently when the partners trust each other and can. Then they can easily expand, advertise and incr

A corporation, too, in a way is a partnership. However, it is also an entity of its own, and exists as per the laws, which it must abide. Since it exists legally as an entity, it can outlive its founder by many, many years. Take Henry Ford, for example, founder of the Ford Motors Corporation. Notice that the corporation exists to date, even though good old Henry’s been dead. The typical corporation represents its assets and holdings as shares of stock, which when publicly sold can change hands at the stock exchange in the blink of an eye; hence, whoever the holder of the stock is, he is also the co-owner of a corporation. Since the corporation openly sells itself on the market, there is always an easily accessible source of capital for the corporation to continue as a business enterprise. A corporation is run by a board of directors, which are selected by the wills of stockholders. The board runs the company, oversees, manages and controls its business enterprises. The corporation owners have limited liability like limited partners. After all, they are investors too. All in all, an investing co-owner of a corporation will not come out losing more than he started with. A corporation is also subject to double taxation; whereas the corporation is taxed upon as an entity, as well as income taxes taken from its investing co-owners. To set up a corporation, certain fees are applicable for its creation, organization and utilization.

The single proprietorship is a form of business used by most Americans. It is a form of business that has only one owner. It may have employees, or it may not. Depending upon the size, of course. The government doesn’t control proprietorships, and has little laws to limit them. Also, the sole proprietors themselves have full control over and access to all assets, income, production, etc. This allows the owners to depend on themselves and manage the business however they would like. However, this form of business also has disadvantages. First off, the owner has unlimited liability over all of his business debts and lawsuits (if any), meani

Some topics in this essay:
Advantages Disadvantages, Abstract Page, Corporation Notice, Single Proprietorship, form business, increase profits, Page Page, Henry Ford, Cited Page, unlimited liability, Partnership Page, Conclusion Page, Corporation Page, overview advantages disadvantages, partnership form, single proprietorship, sole proprietorship, expand business, governmental regulation, overview advantages, advantages disadvantages •, partnership form business, advantages disadvantages, business substantially run, substantially run correctly,