Organizational Forms

Assignment 3 To: Jim Baku & Scott Hanson From: xxxx Date: xxxxxxx 2012 RE: organisational Forms Jim and Scott, When fount your join restaurant thither be a many affairs to consider. One of the most important things is should your venture be organized as a confederation or a mountain. The first thing you should do it to look at the advantages and disadvantages of brace forms of p arntage organization. Partnerships: A partnership is an agreement between the twain of you, allowing you to combine your resources to r from each one a plebeian goal; opening and operating your restaurant. This would allow you two to consider in charge of the restaurant and share in the salary together. Now there are two forms or business sector partnerships. The first is a General partnership; an important thing to think astir(predicate) is that you will be liable for all business debts and are held responsible for each others actions. nevertheless both or you would be active in xxiv hour period to day operations. Now a give birth partnership, one or more(prenominal) partners invest in the business, but are not tortuous in the day to day prudence of the business. Now it apprize be worked out in a throttle partnership for partners involved with management to receive a larger eject of the profit. Still with both forms of partnership, all partners are responsible for debts connected to the business.

Advantages * Low startup cost * revenue advantages * Limited regulation * Ease of formation Disadvantages * unmeasured financial obligation * No name protection * Partners p! ost lawfully make each other to debts * Authority divided among partners. Corporation: A limited corporation is a legal entity which is separate from the corporations members or stockholders. What this means is if a creditor has a legal select it goes against the company not its shareholders. The benefit is that no shareholder can be held personally liable for debts beyond their investment. Advantages: * Limited Liability * Small...If you sine qua non to get a full essay, order of battle it on our website: OrderCustomPaper.com

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