Business Organizations and Corporate Structure

1 Types of wrinkle organizations\nVary in their peculiar(prenominal) details from one jural power to another. However the general partition of business readprise into sole proprietorships, partnerships and companies is truly widely used.\nSole proprietorship(not legall(a)y)- good to perform, dissolve and inexpensive. No legal distinct entities. Liability is unlimited. must have proper efficacy and be registered with the appropriate state agency. Disadvantages: limited borrowing, limited capital, problems with pass and sickness, limited scope for expansion.\nPartnership(not legally)- business associations formed by dickens or more soulfulnesss to authorize a business for profit. discern document- partnership pact, set off the duration of the partnership, name, how profits and losses are to be shared. articulation and several indebtedness for all debts of the business, partners are agents and have fiducial relations with each other, whitethorn be general(no formal paper are signed of fill) and limited(written agreement among the parties, formal document is filled with state officials).\nLimited financial obligation partnership-legal identity fail from its members.\n\n2 Corporations\nCorporation- USA, connection- England\nCorporation- business entity, separate from its members and has: limited liability of its shareholders, centralized precaution, persistency of vitality and free transferability of interests.\nFeatures:\n efficacious independence:\nCorpor is separate from its members\nHas its give birth life and existence\nHas the same(p) rights and obligations as natural person\nCan lend, borrow money, enter into contracts, sue and be sues, acquire, subscribe and hold property\n perseverance of life:\nDistinctive hold\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 nigh held corp shareholder hind end manage compan y on their own\nFree transferability of interests:\n circulate corporations shareholders can sel...