Grade Received - "A"
What are the three forms of a business organization?
What are the advantages and disadvantages of each form?
For a corporation, what is the overall goal of the financial manager?
Do you agree with this goal?
Why or why not?
In this discussion I will attempt to discuss what the three forms of business organizations are and discuss what the advantages and disadvantages are for each form. I will then explain what the overall goal of a financial manager is when it comes to a Corporation and if I agree with these goals. Depending on the types of classes that have been taken or if you are a business owner yourself, some of these questions should be somewhat common ...view middle of the document...
There will be limited expertise in many areas. A mechanic who owns a repair shop may not be a good account. They may also have trouble finding employees, they need to commit a large amount of personal time and may have an unstable business life. Lastly, the business will only last as long as the owner (Brooks, 2010).
Advantages of partnerships are also that they are easy and inexpensive to form. With a partner, the business owners will be able to share diverse skills and expertise with one another and if there is someone else there to work, it will provide more flexibility in the work schedule and tasks that need to be conducted. Partnerships also are relative to have more freedom and government regulations than corporations.
A few disadvantages of partnerships are the same with any type of "relationship" and that is, there will be some type of conflict between partners and it may be hard to leave or end the partnership. With the same as sole proprietorship, there is also a limited liability and potential loss. Regardless of how one may feel when it comes to the amount of work that one does, profits will have to be shared with one another.
For corporations, a few advantages are that it has limited liability (Brooks, 2010). If the customer tries to a Corporation, they can only sue for the assets that the Corporation owns. Because banks look at...