Latasha Y. McMaster
American Intercontinental University
There are three types of Business: Sole Proprietorship, Partnership, and Corporation. In my opinion based on the scenario for this paper a sole proprietorship is the best option for starting a business. The inventor does not have to funding to back up the invention but thinks that the invention will be successful. The best way to start this business is to start small and if the product does well then the owner should expand the company.
Legal, Social, and Economic Environment of Business
There are three major types of business and the all have their advantages and disadvantages. A sole proprietorship is a business that is owned and operated by one owner. A partnership is a business that is owned by two or more owner and the financial burden is split between the owners of the company. The final type of business is a corporation this type of business has property rights and separate status from the owners, and they are financially responsible.
A sole proprietorship is a small business that is owned and operated by one individual. The advantages of a sole proprietorship are low startup costs, freedom to be you own boss, and easy forms to fill out. There are some disadvantages as well which are being personally responsible for the debts of the company, and it is harder to barrow the money for the startup cost. The businesses that are around today also started small and became bigger through sale and revenues. After the sales and revenue are bigger you could advance to a partnership or become corporation.
A partnership have two or more owners who operate the business and are evenly financially responsible. The advantages to a partnership are that it is relatively easy to establish, the debt versus equity may increase, and prospective employees may be attracted to the business if given the incentive to become a partner. But there are disadvantages as well which are partners are liable responsible for all of the partners and actions, profits also must be share with all partners equally if not deicide in the partnership agreement, and the decision in the company are shared therefore disagreements can occur. If you have someone that could equal benefit your company then a partnership may be the best way to start your business. With that being said if the company is doing well in sales and