Healthcare Business Organization Paper
Healthcare has drastically changed over the years in the United States. As our population is growing in size, a shortage of the number of health care professionals is also growing. Entrepreneurs have greatly benefited the world of health care by assisting with creating more jobs, producing products and services to assist and meet the growing needs of the population, and starting new business organizations to meet the needs of today’s economy. There are different forms of organizations and choosing the correct one is important, as it will affect the success or failure of the business.
Define the Different Forms of Business Organizations
Sole proprietorships are an individually owned business where the …show more content…
Explain the Disadvantages of Each Form of Business Organization
Sole proprietorships place the owner at risk if debts outweigh the profits due to personal property being at risk because of the owner being responsible for all debt and liabilities. This form of business may struggle with the type of employees it draws due to personal funds needed to start the business. If the owner is not available to run the business it is at high risk of failing. In a partnership business because each owner is equally accountable for the liabilities each member will be held responsible for any negative actions by another partner. Because of diversity members may run into disagreements with the management or expenses of the business. According to Business Finance (2011), “The process of incorporation requires more time and money than other forms of organization” (Para. 3). Taxes may be higher for a corporation, and there are more strict regulations to follow. A corporation may also be sued.
Some disadvantages of a limited liability company are that owners