What Type Of Business It Will Be Made When Setting Up A Business?

1044 Words Mar 6th, 2015 null Page
There are many choices that must be made when setting up a business but the most important question is what type of business it will be. In today’s business world there are three types of businesses sole proprietorships, partnerships, and corporations. In this paper each type of business will be explained in detail by describing advantages, disadvantages, and examples of each type of business.
The first form of business is the sole proprietorship. A sole proprietorship is a business that is owned and operated by one person. Sole proprietorships make up 72% of all businesses yet account for only 5% of sales (Remy, 2008). A sole proprietorship is very easy to start and operate. To start a sole proprietorship all you need is an idea, money, and hard work. There is no formal way to start a sole proprietorship. Any business activities of one person not affiliated with another person can be considered a sole proprietorship. As a matter of fact even most teenagers may own a sole proprietorship. Activities such as babysitting, mowing lawns, shoveling sidewalks or any other activity in which you work alone and get paid are considered sole proprietorships. Along with being easy to setup a sole proprietorship allows full control to the owner (Remy, 2008). Any choice in the business is made by one person. This makes decision making fast and easy. On the other hand though there are many disadvantages to a sole proprietorship. The first is money. The money to start a sole proprietorship…

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