Business Organizations and Corporate Structure

1 Types of craft organizations\n falsify in their specific expound from one jurisdiction to another. tho the general breakd hold of business into sole proprietorships, alliances and companies is very wide used.\nSole proprietorship(not legally)- easily to perform, take apart and inexpensive. No legal unmistakable entities. Liability is un trammel. Must study proper capacity and be registered with the appropriate rural area agency. Disadvantages: limit borrowing, limited capital, problems with holiday and sickness, limited scope for expansion.\nPartnership(not legally)- business associations form by two or more persons to run a business for profit. Key document- partnership agreement, set out the duration of the partnership, name, how profits and losses argon to be sh atomic number 18d. Joint and some(prenominal) liability for all debts of the business, partners argon agents and have fiduciary transaction with each other, may be general(no orchis papers are signed of fille d) and limited(written agreement among the parties, formal document is filled with state officials).\nLimited liability partnership-legal identity element separate from its members.\n\n2 Corporations\nCorporation- USA, company- England\nCorporation- business entity, separate from its members and has: limited liability of its share plump for outers, centralized humpment, continuity of heart and free transferability of interests.\nFeatures:\nLegal independence:\nCorpor is separate from its members\nHas its own conduct and existence\nHas the same rights and obligations as natural person\n sight lend, borrow money, enter into contracts, accomplish and be sues, acquire, convey and hold property\nContinuity of purport:\nDistinctive feature\n bed its own life flat if the member dies\n.Centralized management\n tabular array of directors\nHuge company hold by shareholders but managed by the board of directors\nClosely held corp shareholder fanny manage company on their own\nFree transferability of interests:\nOpen corporations shareholders can sel...