3. Advs and Disadvs of different kinds of business organizations.

I. Introduction:

-  3 types of business organizations: proprietorship, partnership and corporation.

-  Each kind has its own advs and disadvs.

II. Body:

P1: Proprietorship is the form of business organization being owned and run by only one person.

Advs:

+ these businesses are very easy to set up and close down and requires low cost of formation. 

+ and they provide certain freedom for their owners, proprietors are their own bosses.

Disadvs: they are limited life, limited abilities, limited funds and unlimited liability. Unlimited liability means that the owner of the proprietorship is held liable for all the debts of the businesses.

P2: Partnership is a form of business organization being owned and run by more than one person.

Advs:

+ also easy to set up and close down,

+ more experience and knowledge than a sole proprietorship.

- Disadvs: limited fund, limited life, unlimited liability and disagreement among partners.  In this kind of business organization, every partner is responsible for debts of the business.

P3: A corporation is a business that is licensed by a state or a federal government.

- Advs: over the other two kinds of business organizations: unlimited life, limited liability, easy transfer of the ownership and fund raising.

+ the business has to pay the debts, not people who own it.

+ that ownership can be transferred to another person by selling shares of stocks.

- Disadvs:

+ very complicated and expensive to set up

+ it is subject to double taxation: first, the corporate income tax and second, personal income tax paid by its stockholders.

III. In conclusion