Types Of Organization Structures Essay Example | Topics and Well Written Essays - 1500 words

Types Of Organization Structures - Essay ExampleThe business owner is in direct control of only the elements and operations of the business, as well as bearing the accountability of all the finances of the firm, inclusive of business profits, business losses, business debts, business loans and business assets. During the beginning of the business, after get the certificate of registration, family members basin assist in running the business.Sole proprietorships ar the common forms of business structures in foundation in the market today, majorly because of the numerous advantages that accrue to a sole principal. For one, it is cheap, simple and quite easy to urinate a sole proprietorship business very fast because it does not have numerous sanctioned demands because they carry little or minimal ongoing legal formalities. In addition, a sole trader does not have to pay his or her unemployment taxes. However, the sole proprietorship has its own set of legal constraints make it not the preferred business form. One of the worst demerits of a sole proprietorship is the fact that owners are subject to unlimited personal liability for the debts, liabilities, and losses suffered by the business. As such, personal property can be attached to offset these liabilities. A sole trader cannot secure financing from banks on the governance of the business, or sell out some interest in the business in order to move up more capital, thereby limiting his or her capital threshold. Finally, a sole proprietorship lacks its own life, and in most cases, dies with the demise of its owner.