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 ( 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. Decision may be made more quickly and have flexibility to change it at any time.
  3. The owner may enjoy the profits without any sharing with other owner and you only pay individual income taxes you do not have to pay business income taxes (economics).
  4. The sole proprietorships have the personal freedom by being their own boss. They also feel their satisfaction is worth more than a higher salary they might earn working for someone else (economics).
  5. It is very easy to get of business at certain time.
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Economic Weaknesses:

  1. Unlimited liability, which mean the owner has the responsibility for all loses and debts of the business (
  2. It is very difficult to make more money and raise the finical capital. This means that the personal financial resources available to most sole proprietorships are limited (
  3. It has small and limited managerial experience. Because the owner has lack of knowledge in all types of work, he may have to hire others to do this work. Also, the owner is one person and he does not have the experience like other business organization.
  4. It is ...

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