Explain The Legal Forms Of Business Law 531

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Legal Forms of Business Law/531 November 7, 2011 Sole proprietorship This is the simplest form of business organization. A Sole proprietorship is a one person business, and the owner is the sole proprietor of the business. A Sole proprietorship is easy to establish and takes low cost to start, depending on the type of business. In this kind of business the sole proprietor owns and does all the management of the business and business…show more content…
Scenario In the competitive business world, establishment of new business should offer something different. If one prefers to take less risk and more advertising with a known firm it is better to choose franchise. To start a fast food center like Mac Donald’s, the new business should be very competitive to it to withstand the competition with the existing fast foods. So in this scenario better option is to go for franchise, which is already established. Corporate form The main advantage in the corporate form is the limited liability. The corporation is not liable for the losses of the shareholders or the employees losing jobs in the company. Scenario The setup of a semiconductor corporation can be seen as a corporate form of business. They have limited liability to debts and obligations, unlike other forms of business. In this it helps in the investment of the huge amount of money. The shares are transferable, sold, or given as

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