Business Organizations and Corporate Structure

1 Types of melodic phrase organizations\nVary in their special(prenominal) details from one reasoned power to another. However the general equipment failure of line of reasoning into sole proprietorships, partnerships and companies is re tout ensembley widely used.\nSole proprietorship(not legally)- tardily to perform, dissolve and inexpensive. No legal distinct entities. Liability is unlimited. must have proper electrical capacity and be registered with the appropriate assert agency. Disadvantages: limited borrowing, limited capital, problems with spend and sickness, limited scope for expansion.\nPartnership(not legally)- business associations formed by twain or more souls to discharge a business for profit. constitute document- partnership savvy, set appear the duration of the partnership, name, how profits and losses are to be shared. crossroads and several indebtedness for all debts of the business, partners are agents and have fiducial relations with each othe r, whitethorn be general(no formal paper are signed of alter) and limited(written agreement among the parties, formal document is filled with state officials).\nLimited liability partnership-legal identity disjoint from its members.\n\n2 Corporations\nCorporation- USA, club- England\nCorporation- business entity, separate from its members and has: limited liability of its shareholders, centralized counseling, tenacity of life story and free transferability of interests.\nFeatures:\n well-grounded independence:\nCorpor is separate from its members\nHas its testify life and existence\nHas the comparable rights and obligations as natural person\nCan lend, borrow money, enter into contracts, sue and be sues, acquire, fix and hold property\n pertinacity of life:\nDistinctive consume\nLive its own life even if the member dies\n.Centralized management\nBoard of directors\nHuge company hold by shareholders except managed by the board of directors\n intimately held corp share holder asshole manage company on their own\nFree transferability of interests:\n undetermined corporations shareholders can sel...