What is the Best Form of Business Organization? .
What is the best form of business organization?.
There are three basic types of business organizations: sole proprietorships, partnerships and corporations. The best form would have to be the one most applicable and beneficial to an entrepreneurial individual. Since the question can't be answered with a factual response, it is simply defense of opinion.
Given the three forms, I would have to pick partnership. It is the best form of business because of its managerial flexibility, its quickness to set up and division of labor as well as income. A sole proprietorship is simply too strenuous to be run by an individual efficiently enough to expand the business and increase profits. A corporation is too large to maintain and it is run by a board of strangers who haven't been met or extensively researched.
A partnership can be run efficiently when the partners trust each other and can. Then they can easily expand, advertise and increase profits, which, in turn, will raise capital toward the business substantially. When run correctly, the partners can easily take the stress of proprietorship off themselves because they can work together and split up tasks according to allocated time, as well as ability.
The only downsides are: unlimited liability, and division of income. However, these can be easily avoided as disadvantages by proper maintenance and management. If the right moves are made, there will be a considerably large amount of income to divide, there also wouldn't be anything to be liable for since the business will be flourishing.
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Single Proprietorship.
The single proprietorship is a form of business used by most Americans. It is a form of business that has only one owner. It may have employees, or it may not. Depending upon the size, of course. The government doesn't control proprietorships, and has little laws to limit them. Also, the sole proprietors themselves have full control over and access to all assets, income, production, etc.
