Review a report about the forms of business organizations listed below. The report should have a subheading for each business form with a brief description of the business form and a brief discussion of the key characteristics, advantages, and disadvantages of that form of organization.
1. Explain how at least six of the seven key characteristics listed in the introduction to this task apply to each of the following organizational forms:
a. Sole proprietorship
b. General partnership
c. Limited partnership (Discuss all characteristics in terms of both the general partners and the limited partners)
f. Limited liability company
The business entity characteristics
• Liability: What are the limits on liability and protection of not only business assets, but personal assets and future earning power of the owner beyond this particular business?
• Income taxes: What are the features of each business entity that affect the amount of federal, state, and local income taxes paid by the business and/or owners?
• Longevity or continuity of the organization: What features of each form relate to forced dissolution of the business organization?
• Control: Who has ultimate control over important decisions? How much control does the owner have to grant to others?
• Profit retention: What portion of the profits does the owner have to give up because they have to be shared with others? How does this affect return on investment?
• Location (Expansion): What are the implications for moving or expanding the business into a different state? Will a separate legal entity have to be created or new documents filed in the new state? Are there advantages or disadvantages regarding how state taxes will be assessed?
• Convenience or burden (Compliance): What additional requirements or extra workload are placed upon the organization
WORK NEEDS REVISIONS AS IT DOESN’T MEET ORIGINALITY GUIDELINES…