Organizational Forms

Assignment 3 To: Jim Baku & Scott Hanson From: xxxx Date: xxxxxxx 2012 RE: organisational Forms Jim and Scott, When fount your join restaurant thither be a many amours to consider. One of the most important things is should your venture be organized as a confederation or a heap. The first thing you should do it to look at the advantages and disadvantages of mates forms of melodic phrase organization. Partnerships: A partnership is an agreement between the 2 of you, allowing you to combine your resources to r from each one a plebeian goal; opening and operating your restaurant. This would allow you two to carry on in charge of the restaurant and sh be in the network together. Now there are two forms or business organization partnerships. The first is a General partnership; an important thing to think astir(predicate) is that you will be liable for all business debts and are held responsible for each others actions. until now both or you would be active in 24 hour period to day operations. Now a substantiate partnership, one or more(prenominal) partners invest in the business, but are not tortuous in the day to day caution of the business. Now it apprize be worked out in a particular(a) partnership for partners involved with management to receive a larger eject of the profit. Still with both forms of partnership, all partners are responsible for debts connected to the business.

Advantages * Low startup cost * tax revenue advantages * Limited regulation * Ease of formation Disadvantages * unmeasured financial obligation * No name protection * Partners post wakelessly lodge each other to debts * Authority divide! d among partners. Corporation: A limited corporation is a legal entity which is separate from the corporations members or stockholders. What this means is if a creditor has a legal select it goes against the company not its shareholders. The benefit is that no shareholder can be held personally liable for debts beyond their investment. Advantages: * Limited Liability * Small...If you sine qua non to get a full essay, locate it on our website: OrderEssay.net

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