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Compare and contrast two different business forms (sole proprietorship, general partnership, limited partnership, and limited liability forms (partnership or company). What makes the two different? Which situations would each chosen form be more appropriate in?

For someone with aspirations to own there own small clothing store , sole proprietorship may suit them best. An individual who seeks a business venture into law/medical may want to do a general partnership. One example would an individual who is seeking to open there own beauty shop would fit best to choose a sole proprietorship.

Sole Proprietorship can be defined as the simplest form of business organization. This form is the easiest form of ownership where that individual would be in complete control. The individual would be able to make decisions as they see fit along with the right to keep all profits from their business. Now this can be a great decision based upon the business one is running and how successful it is turning in customers and orders. One great advantage with retaining there profits would be automatically be entered into that individuals tax return when the time comes. This is a great tool to not only save time but get a little extra back when February comes along.

Some examples of sole proprietorship would be your local small coffee shop, bed & breakfast or even a dog groomer. The majority of the small mom & pop stores tend to be sole proprietorship whether it is a donut shop to a small mechanic shop. However, some disadvantages does include unlimited liability; being the sole owner you are responsible for all debt within the business. There is an immense amount of responsibility being the only owner of a company besides building capital for t...

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...ted Partnership can be defined as a different form of general partnership requiring a partnership agreement among all parties involved. This agreement may include things such as information about business, what products or services will be done in the establishment. There must be at least one general partner among the group to do a limited partnership. This individual will be the team leader and manage operations as well as being responsible for making decisions for the business. All those who are limited partners are lacks authority in decision making or managing operations. However, they are not fully responsible for any debts or other financial problems in the business. Personally, limited partners can be viewed as an investor more than anything else. In fact the only aspect they are at risk to lose is there investment in the business if anything were to go wrong.