This website uses cookies to ensure you have the best experience. Learn more

Business Ownership Essay

683 words - 3 pages

Forms of Ownership
 
Business is the profitable activity in which the owner provides products or service to the customers in order to get profit. The main aim of the business is to make profit. The wrong decision on selecting the ownership affects the over all performance of the business. The business run by the one in order to take risk and profit is called the sole-proprietorship. The second form of the ownership is partnership which include more than two business partner in the firm. Corporation is the third form of the business ownership which is entity where the shares are sold, governed by the law and working as a unit.
 
Sole proprietorship is the form of the business ownership in which the whole business activity is run by the single person. The legal requirements for this ownership are minimal and it’s easy to organize. It is run by the single person and he/she has the full control over the activities. The earnings in a proprietorship are considered to be ...view middle of the document...

Control is also shared therefore there is little chance of misjudgments.
 
The third form of the business ownership is corporate where there are many share holders of the firm who have their own individual shares. This type of the ownership gives limited liability which means that there is no risk on person. The many share holders in this ownership gives access to more funds to run the company. If the owner is dissatisfied with the firm he/she can transfer the ownership. The structure of the corporate ownership is big hence there are high organizational expenses (i.e. for creating charter and file, establishing bylaws and issuing stocks). The financial disclosure is a problem to this type of ownership as the competitors know how the business is running and take advantage of it. The agency problem is another important problem in which the manager may do the things for his own benefit rather than the firm or the owners. The dual tax system (i.e. first by the company and the shared dividend as the personal tax) is the problem of the corporation.

Therefore I will like him to change the ownership form from the sole proprietorship to the partnership, being the sole proprietor of the sign board it provides him the limited funds and the limited skills. But if he changes his business form from sole proprietorship to the partnership then he will be provided with the additional funds and the losses are shared. also there will be more specialization which means the abilities and the qualities are shared among the partner in the business. Which leads him to get more experience working on a group and his vision to grow nationally and internationally finally gets fulfilled.

Binod Jung Katuwal
BUS 100
Forms of ownership
Writing: Very good. You made relatively few errors of usage and spelling. Your paragraphs were well structured, with each one expressing one idea only.
Thinking: Very good. You demonstrated that you understand the advantages and disadvantages of various forms of ownership. Your paper was well structured in general, although your conclusion was not tied to the rest of the paper, nor was it mentioned in your introduction.
Following directions: You wrote on the assigned topic. You wrote the minimum number of words. You used a serif font.
Your grade: 6/7

Other Essays Like Business Ownership

Home Ownership Essay

859 words - 4 pages Owning a home is a rewarding smart venture. Besides, fulfill lifelong dream. There are practical reasons for investing in your first home. Home ownership enables families to grow and provides the freedom to live as they chose. Homeownership is a long- term investment, as it stretches the ability of making modification, and provides sense of stability. Ability of making modification to the house is a reason I want to buy a house. I want to be

Co Ownership Essay

562 words - 3 pages Co Ownership-Joint tenancy, Tenancy in common. In Oder to establish a JT a unities has to be established 1)Unity of Title they should hv deride title by the same person 2)unity of time-title should hv been derived at the same time 3) U of interest-each co owner is entitle to the entity of the land 4) U of possession each co owner is entitle to posses the land & cannot oust the co owner.//JT under the JT each co owner is entitle to whole of

Dreams Of Home Ownership

773 words - 4 pages From the beginning of our existence, we as people are taught that life is about the pursuit of happiness, (go to school and graduate from college with a great career, fall in love, get married, buy a house, raise a family, and live happily ever after). This is considered to be the American Dream. On the road to happiness, the average American dream can turn into a nightmare when it comes to buying a home, whether you are a

The Crest And Crashing Of Ownership

1267 words - 6 pages . Though there is empowerment in ownership the individual must show responsibility to pay for it or they will find themselves in debt. Psychologically, ownership affects people on a very emotional scale, from how they treat their property, to an obsession they may develop because of their property, to even how people target certain owners because of their wealth. In David Boaz’s “defining an ownership society” he quotes Aristotle “what belongs in

Should the U.S. Government Prohibit Ownership of Dangerous Pets?

1883 words - 8 pages Should the U.S. Government Prohibit Ownership of Dangerous Pets? American Government and Politics From tigers to crocodiles, it is simple as ABC: they are wild dangerous animals. Nowadays keeping of wild and exotic animals as home pets has become normal practice in the U.S. More and more people brag with the fact of owning tigers, wolves, bears and even crocodiles at home. Often bought as babies, when exotic pets become too much to handle

“Mobile Phone Ownership Has Exploded Globally but Still Displays Core and Periphery Characteristics”. Discuss to What Extent Do You Agree with This Statement with Reference to 2 Case Study

640 words - 3 pages Mobile phone has been a daily necessity towards every human in almost every age group. Mobile phones nowadays are capable of so many things compared to the first ever mobile phone that was created in 1970s that looked like a brick with an antenna. As the title suggest, mobile phone ownership has exploded globally. This could be confirmed as the use of mobile phones are expanding to not only MEDC like the U.S., but also the LEDCs like Kenya. Even

We Are the World

1481 words - 6 pages Succession. 2. Top management team turnover, CEO succession type, and strategic change 3. Family ownership and firm performance: Empirical evidence from Western European corporations. 4. CEO Succession, Compensation and Firm Performance. 5. How Has CEO Turnover Changed? 6. CEO turnover boosts top job opportunities 7. Internal Monitoring Mechanisms and CEO Turnover: A Long-Term Perspective http://www.docin.com/p-328153104.html CHICAGO'S LESSON IN LAYOFFS LAY OFF THE LAYOFFS http://www.nytimes.com/2009/01/27/business/economy/27layoffs.html \

P1 Unit 1 Business

2521 words - 11 pages For this task I am going to use the research from class to explain the types of business ownership and the sector which it operates in, the size, the scale, the size of the industry, the liabilities it has and the advantages and disadvantages of the business ownership. Type of Business Ownership and Business Sector | Snac Attack | Cameron Blake Chartered Accountants | Sole Trader- A sole trader is a business which is owned by one person

Change Management Process - Organizational Analysis

934 words - 4 pages Change Management Process The project challenge involves the lack of ownership in the change management process. Our organization works to ISO 9000 and AS9100 standards. The International Standards for Business, Government and Society (2008) makes this notation about processes and process ownership: A “Process” can be defined as a “set of interrelated or interacting activities, which transforms inputs into outputs”.  These activities require

Enterpreneurship

614 words - 3 pages must be determined, focus, driven, and humble. There isn't a step-by-step on how to be successful, however you don't have to be a mythical creature to become successful either. Many people think success comes over night like lottery winnings but is learned through experience. 4. What are the major benefits of business ownership? The major benefit of entrepreneurship is the sense of accomplishment, nothing feels better than setting fourth a goal

Fractional Flying

486 words - 2 pages One interesting career choice is flying shared ownership business jets, also called fractional owner-ship. Shared ownership is where an owner buys a fraction, "typically one-sixteenth or more, of an airplane and is entitled to fly a set amount of hours in that airplane" or any of the other airplanes in the fleet.There are many companies that offer shared ownership programs. A few of the companies are: Executive Jet Aviation's NetJets

Related Papers

Investigation Of The Types Of Business Ownership

1064 words - 5 pages Investigation of the Types of Business Ownership JCC Limited is a private limited company. Other forms of business ownership include: The sole trader. This is the most common form of private sector business. This type of business has one owner who runs the business and may employ any number of people to help. Advantages of being a sole trader include the lack of legal restrictions, the sole trader is able to

Types Of Ownership Essay

1102 words - 5 pages same with the business. Advantages of a Sole Proprietorship: * Easiest and least expensive form of ownership to organize. * Sole proprietors are in complete control, and within the parameters of the law, may make decisions as they  see fit. * Sole proprietors receive all income generated by the business to keep or reinvest. * Profits from the business flow directly to the owner's personal tax return. * The business is easy

Ownership Structure And Firm Performance Essay

1859 words - 8 pages ., Cole, R. A., & Lin, J. W. (2000). Agency costs and ownership structure. The Journal of Finance, 55(1), 81–106. Aslan, H., & Kumar, P. (2012). Strategic ownership structure and the cost of debt. Review of Financial Studies, 25(7), 2257–2299. Basco, R. (2013). The family’s effect on family firm performance: A model testing the demographic and essence approaches. Journal of Family Business Strategy, 4(1), 42–66. Berle, A. A., &amp

The Separation Of Capital Ownership And Control

1577 words - 7 pages monitoring and asymmetric information. Managers run business on a daily basis and then as a consequence, have a more comprehensive view of the business while owners get information only based on annual reports or data provided by managers. In this case, there is no rational reason to expect managers will act as they promised. By contrast, there is another theory citing that the separation of ownership from control can be efficient, which is