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Business Organization in the United States.

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Business Organization in the United States In the United States there are many business organizations. The most common form of business organizations are sole proprietorships, partnerships, and corporation. Sole proprietorships: In the United States the sole proprietorships is the most common form of business organization. Sole proprietorships are the business that have one person who own and mange the business, although the majority of business organizations in the United States are the sole proprietorships, which are the smallest business in size (brampton-business.com). Also they are relatively the most profitable. It is very easy to start a business like sole proprietorships and there are unlimited ways to start and exist this business. For example, you could start a sole proprietorship by going to the beach and in the summer and sell mineral water to people. Someone else might decide to buy a farm and sow seeds then harvest the crops and sell it to the market, or open a restaurant. Economic strength: 1. It is very easy to start sole proprietorships. 2. It is very easy to mange a sole proprietorships. ...read more.


5. Sole proprietorship is limited life and that means if the head of the organization die, retired, or sell the business, the organization itself will be endanger or end (enterprisesoutheast.ca). Partnerships: Partnerships are the businesses owned by more than one person. They are similar to sole proprietorships in strengths and weaknesses. There are many types of partnerships but the most common two are: General partnership: one person is the manager and he responds for all business (brampton-business.com). Limited partnership: at least one partner is not working in the daily running of the business (brampton-business.com). Economic strengths: 1. It is easy to establish and manage it. 2. It can usually attract financial capital more easily than proprietorship. 3. It is always larger in size than proprietorship. 4. It can attract top talent more easily than proprietorship (economic). 5. It will have more benefit of more than one person working the business "two or more heads better than one". (learnthat.com). Economic weaknesses: 1. Each partner is fully responsible for the acts of all other partners. If one of the partners steals, does illegal work, or cause the firm to lose a huge amount of money, each partner is fully responsible for the loss. ...read more.


3. A corporation has limited liability, which means the owners are not responsible about the firm but the corporation is fully responsible for its debts and obligations. 4. A corporation has unlimited life, which mean that business continues to exist even when ownership changes (enterprisesoutheast.ca). 5. It is very easy to transfer ownership. If a person owns stock in a corporation and he does not want to be an owner he can the stocks to another person and this person becomes an owner (tenonline.org). Economic weaknesses: 1. It is very difficult for having permission to open corporation, there are more requires, and more paperwork and record-keeping than sole proprietorships (energiebp.com). 2. The owners have a little control or less freedom of activity on the business, and they cannot make any decision in the corporation because most investors are willing for getting dividend. 3. Taxes of corporations are more than other business organizations (enterprisesoutheast.ca). 4. It is very complicated to establish corporations because it too expensive and it will need a long time (enterprisesoutheast.ca). To summarize, sole proprietorships, partnerships, and corporations are the most common business organizations in the United States but corporations are the most profitable organization and the most complex one. ...read more.

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