We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Kinds of Business Essay Sample

essay
The whole doc is available only for registered users OPEN DOC
  • Pages:
  • Word count: 626
  • Category: business

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Kinds of Business Essay Sample

Sole Proprietorship

A sole proprietorship places all liabilities for finances and operations on the owner. The owner’s personal property is tied to the business, so he assumes a risk against his personal assets should the business experience financial hardship. Annual income tax returns are filed on a Form 1040, and the owner must also file self-employment taxes. The profits and losses of the business are reported through the owner and are taxed at the individual rate. The sole proprietorship business entity is the simplest form to set up, but the owner typically must sell the business to retrieve his investment.

Partnership

A partnership entity has two or more owners sharing equal control, unless the partnership agreement states otherwise or the structure is set up as a limited partnership. Similar to a sole proprietorship, the profits and losses of the business flow to the partners and are taxed at the individual rate. Operating partners assume risks both legally and financially. Creditors can attempt to collect debts from the partners personal assets. To recoup his investment, a partner is generally required to sell his interest in the business.

Corporation

A corporation can have an unlimited number of owners, also known as shareholders. In a corporation, the business entity remains separate from the owners in legal and financial matters. The profits and losses of a corporation are taxed at corporate rates, not individual rates. If the corporation realizes a profit, it is paid out to shareholders who must then report it as income and pay taxes on it at the individual rate. A shareholder in a privately held corporation must sell his interest to regain his investment. In a publicly held corporation, a shareholder can trade his shares on the open market.

3 broad classes of business enterprise

Service Business – A service type of business provides intangible products(products with no physical form). Service type firms offer professional skills, expertise, advice, and other similar products.

Examples of service businesses are: schools, repair shops, hair salons, banks, accounting firms, and law firms.

Merchandising Business – This type of business buys products at wholesale price and sells the same at retail price. They are known as “buy and sell” businesses. They make profit by selling the products at prices higher than their purchase costs. A merchandising business sells a product without changing its form.

Manufacturing Business – Unlike a merchandising business, a manufacturing business buys products with the intention of using them as materials in making a new product. Thus there is a transformation of the products purchased. Manufacturing businesses combine raw materials, labor, and factory expensesin production. The manufactured goods will then be sold to customers.

Types of Ownership

Private Ownership
When an enterprise is so organized the private individuals exercise and enjoy the rights and privileges of an owner in their own interest.

Public Ownership
Controlled by political buddies as a municipal, provincial, government or by any instrumentality created by them.

Mixed Ownership
It exists when the elements of ownership are divided such that private persons and public buddies share in the operation of the same enterprise.

Cooperative organization

A cooperative association has some elements of a large partnership and also many features of a corporation , although it is distinct from both .17 December 200918Guevarra Institute of Technology

Corporate combinations

The union affected by the absorbing of one or more existing corporations by another which survives and continues the combined business A form of business organization had its origin in a principle of law originally developed for safe guarding the property of minors and other persons not able or willing to administer their own affairs. MergerTrust17 December 200933Guevarra Institute of Technology

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

A Business Plan for an It Start-Up

The company is an ITES startup that makes apps and websites for third party. The business aims at targeting the lesser exploited markets of grocery stores, schools and medical stores. For doing the on-ground marketing of our services, we have planned to hire a salesman. We’ll train him well and make him enough knowledgeable about our business so that he can give us our potential...

Ethical and Legal Issues Revolving

A civil action film is a based on true life experiences that revolve around the good scenarios and issues that are bound to be tried by legal bodies. It is based on the true stories that were taking part in the year 1980s when the environmental pollution took place and better parts of Woburn. There was the ethical issue revolving around the film as there...

Business Ethics - International Trade Administration

As experts in business ethics, your expertise can be used to help breakdown a situation good or bad. In situations we can come in and erase the bad and replace with good or simple reinforce the good that is being done. In this case, we will be doing a lot of erasing for many reasons. This branch of the bank was not doing what it...

Wace Group’s To Scaling A Business

M&S was highly specific about the quality of paper, size of paper, cuts as well as delivery schedule. Though quality standards and technical skills were forte of Wace Group, yet some of the major changes that the company had to accompany in its order schedule, capacity schedule and delivery schedule. Most importantly were of important concern which on one hand can pose risks to the...

Business Accounting and Assurance Coursework

The conceptual framework has been defined as ‘a coherent system of interrelated objectives and fundamentals that is expected to lead to consistent standards.’ (FASB 1978) Answer the following questions in relation to the International Accounting Standards Board’s Conceptual Framework, 2010. Q1. What is meant by general purpose financial reporting and how does it differ from special purpose financial reporting?​The financial report implies noticing down the monetary exercise...

Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Couldn't Find What You Looking For?

Get access to our huge knowledge base which is continuously updated

Next Update Will Be About:
14 : 59 : 59
Become a Member