FORMS OF BUSINESS OWNERSHIPBusiness

FORMS OF BUSINESS OWNERSHIP
Business is a commercial enterprise performing all those functions that govern the production, distribution, and sale of goods and services for the benefit of the buyer and the profit of the seller. Since the beginning of the era of economic progress old ways of running business have been modified, and new forms of business organization have been introduced. This has enabled various branches of industry to adapt to changing conditions and to function more easily, efficiently and profitably, sole proprietorship, partnership, and corporation being the main three forms of business ownership.
A sole proprietorship is a business owned by one person, in which all the profits belong to the owner, the latter being fully responsible for the success and the failure of the business. Unless an activity is specifically prohibited by law, no field of business is closed to an owner. Although advantages for the small business exist in this form, certain drawbacks make it undesirable for lager concerns. In the first place, the single owner is seldom able to invest as much capital as can be obtained by a partnership or a corporation. If single owners are able to invest large amounts of capital, they run great risk of losing it all because they are personally liable for all the debts of their businesses. It is due to unlimited liability that all the personal assets of the owner, including his home and car, can be sold to settle the debts of the business. Unless the owner has much personal wealth, the business may have difficulty borrowing money in critical times. A sole proprietorship may also have difficulty hiring and keeping good employees, because the business will dissolve when the owner retires or dies.
A partnership is an association of two or more persons who have agreed to combine their financial assets, labour, property, and other resources as well as their abilities and who carry on a business jointly for the purpose of profit. The agreement the partners usually sign to form an association is known as a partnership contract and may include general polices, distribution of profits responsibilities.
Like the sole proprietorship, the partnership is easy to establish, and its profits are not subjected to federal corporation taxes. Financing is generally easier to obtain because the personal assets of the group are usually larger and the chances of success are higher. The major disadvantage of the partnership is unlimited liability of each partner for the debts of the business, that is, complete financial responsibility for losses. Furthermore, partners who wish to retire may find it difficult to recover their investments without dissolving the partnership and ending the business.
A business corporation is an organization created by law that allows people to associate together for the purpose of making profit. Corporations are also known as joint-stock companies because they are jointly owned by different persons who receive shares of stock in exchange for an investment of money in the company. Shares represent fractions of the company’s assets such as cash, equipment, real estate, manufactured goods, etc.
Though the corporation is more difficult and expensive to organize then other business form, it has a number of advantages. First, investors can limit their personal liability to the amount of money they have invested, thus, if the corporation goes bankrupt, they can lose no more than they have put in. Second, money to operate the business is obtained by the sale of stocks to the general public and this enables the corporation to exist independently of its owners. The corporation also finds it easier to borrow money from banks and it is also a successful means for attracting large amounts of capital and investing the latter in plants, modern equipment and expensive research. Salaries large corporations can offer to managers and specialists are high and that allows corporations to hire professional and talented employees.
The great drawback of the corporate form of ownership is double taxation of profits which means that business corporations must pay taxes on their net income, and then the shareholders are to pay taxes on the income they receive as dividends on their stock. Different kinds of reports to be filed to federal and state regulatory agencies about the corporation activity can also be considered as another disadvantage of this business form. However, in terms of size and influence it is the corporation that has become the dominant business form existing in most countries with free market economy.

Результаты (русский) 1:

ФОРМЫ СОБСТВЕННОСТИ БИЗНЕСАБизнес-это коммерческое предприятие выполняет все те функции, которые регулируют производство, распределение и продажа товаров и услуг в интересах покупателя и прибыль продавца. С начала эры экономического прогресса были изменены старые способы ведения бизнеса, и были введены новые формы организации бизнеса. Это позволило различные отрасли промышленности, чтобы адаптироваться к изменяющимся условиям и работать более легко, эффективно и прибыльно, исключительно индивидуальное предприятие, партнерство и корпорация является три основные формы собственности бизнеса.Индивидуальный предприниматель-это бизнес принадлежит одному человеку, в котором все доходы принадлежат владельцу, будучи полностью ответственны за успех и неудачи бизнеса. Если действие конкретно запрещено законом, без области бизнеса не работает для владельца. Несмотря на преимущества для малого бизнеса в этой форме, некоторые недостатки делают нежелательно для lager проблем. В первую очередь один владелец редко имеет возможность инвестировать столько капитала, как можно получить партнерство или корпорация. Если один владельцы имеют возможность инвестировать большие объемы капитала, они работают большой риск потерять все это потому, что они несут личную ответственность за долги своего бизнеса. Это из-за неограниченной ответственности, что все личные активы владельца, включая его дом и автомобиль, могут быть проданы для погашения долгов бизнеса. Если владелец не имеет много личного богатства, бизнес может иметь трудности, заимствования денег в критические времена. Индивидуального предпринимателя также могут испытывать трудности найма и сохранения хороших работников, потому что бизнес будет распустить, когда владелец уходит в отставку или умирает.Партнерство является объединение двух или более лиц, которые согласились объединить свои финансовые активы, труда, собственности и другие ресурсы, а также их способности и которые занимаются предпринимательством совместно с целью прибыли. Соглашение, которое партнеры обычно подписать ассоциацию известен как Договор о партнерстве и может включать общие политики, распределение прибыли обязанностей.Like the sole proprietorship, the partnership is easy to establish, and its profits are not subjected to federal corporation taxes. Financing is generally easier to obtain because the personal assets of the group are usually larger and the chances of success are higher. The major disadvantage of the partnership is unlimited liability of each partner for the debts of the business, that is, complete financial responsibility for losses. Furthermore, partners who wish to retire may find it difficult to recover their investments without dissolving the partnership and ending the business.A business corporation is an organization created by law that allows people to associate together for the purpose of making profit. Corporations are also known as joint-stock companies because they are jointly owned by different persons who receive shares of stock in exchange for an investment of money in the company. Shares represent fractions of the company’s assets such as cash, equipment, real estate, manufactured goods, etc.Though the corporation is more difficult and expensive to organize then other business form, it has a number of advantages. First, investors can limit their personal liability to the amount of money they have invested, thus, if the corporation goes bankrupt, they can lose no more than they have put in. Second, money to operate the business is obtained by the sale of stocks to the general public and this enables the corporation to exist independently of its owners. The corporation also finds it easier to borrow money from banks and it is also a successful means for attracting large amounts of capital and investing the latter in plants, modern equipment and expensive research. Salaries large corporations can offer to managers and specialists are high and that allows corporations to hire professional and talented employees.The great drawback of the corporate form of ownership is double taxation of profits which means that business corporations must pay taxes on their net income, and then the shareholders are to pay taxes on the income they receive as dividends on their stock. Different kinds of reports to be filed to federal and state regulatory agencies about the corporation activity can also be considered as another disadvantage of this business form. However, in terms of size and influence it is the corporation that has become the dominant business form existing in most countries with free market economy.