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Question: What are the advantages and disadvantages of these forms of business organization: a… 1 answer below » Question: What are the advantages and disadvantages of these forms of business organization: a proprietorship, partnership, and corporation? Answer: A benefit of having a proprietorship is that all of the profits are yours. Since you are the sole owner, you get all the profit from the business. You also can run the business as you see fit without needing the input of others. Some disadvantages are for one, you are again, the sole owner so you are responsible for everything that happens in the business, whether something breaks or you need to work from open to close. Another is the fact that View complete question » Question: What are the advantages and disadvantages of these forms of business organization: a proprietorship, partnership, and corporation? Answer: A benefit of having a proprietorship is that all of the profits are yours. Since you are the sole owner, you get all the profit from the business. You also can run the business as you see fit without needing the input of others. Some disadvantages are for one, you are again, the sole owner so you are responsible for everything that happens in the business, whether something breaks or you need to work from open to close. Another is the fact that if you go bankrupt or are in any kind of debt, you are responsible and your personal income can be taken from you. You could lose everything. Partnerships have the advantages of being able to work with someone that may have a different idea or talent that you don’t and you can complement each other, making the business that much stronger. Also with a partner, investors may be more willing to supply funding for the business. Disadvantages include unlimited liability of the partners. If one leaves, you are responsible for the entire debt. Another is the fact that if a partner dies, the partnership is dissolved. Corporations have the advantage of limited liability. If the company goes into debt, only the company funds are affected, not your personal funds. The company is able to offer stock options and you are able to hire managers to care for different parts of the company. Disadvantages include higher taxes and more government restrictions. Also, disclosure of financial results is required. ***Please write a brief comment on whether or not the ANSWER given is correct or not, on the right track or if they could have added anything additional.*** View less » Sep 16 2015 10:59 AM
