Advantages and Disadvantages Essay

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Business Model Comparison Jeff R. Slocum Jr. MGT/401 July 6, 2015 Dr. George Monk Business Model Comparison Advantages and disadvantages of business ownership Given that both Samsung and Apple use the same type of business ownership, they are both going to have the same advantages and disadvantages that go along with the type of business ownership that they use, which would be that of a corporation. Corporations are no different from the other types of business in that they all have advantages and disadvantages that must be taken in to consideration when deciding on what type of business that you are going to have. Some of the advantages that corporations have over the other types of businesses are very attractive to business owners and stakeholders alike, such as the limited liability of the stakeholders. Stakeholders in corporations are not able to be held liable for any debts or obligations of the corporation, outside of the money that they have invested in it, so none of their assets are at risk if the business fails. Corporations are also able to attract a great deal more capital than other types of businesses, such as a sole proprietor that is limited to what they are able to generate on their own and the few small loans that they may receive. Another advantage of corporations is that they have a transferable ownership and the ability to continue indefinitely should something happen to one of those in charge (Zimmerer, Scarborough, & Wilson, 2008). As with every advantage, there also comes disadvantages; one of those being the very costly and lengthy process that is involved in incorporating an organization. It cost a great deal of money for a business to become a corporation, a disadvantage that may be offset by the increase in capital that the business is able to gather. Then there is the double taxation that affects those involved with
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