172k views
1 vote
The basic concepts of financial management are the same for all businesses, regardless of how they are organized. However, a firm's legal structure affects its operations. The main forms of business organizations are: (1) proprietorships, (2) partnerships, (3) corporations, and (4) limited liability companies (LLCs) and limited liability partnerships (LLPs).

User Zoonosis
by
8.7k points

1 Answer

5 votes

The following are various forms of businesses and brief elaboration on how the legal structure of these businesses affect each:

  • Proprietorship: A proprietorship business is allowed to have a single owner who is responsible for the functional legalities of the business.
  • Partnership: A partnership business can have multiple owners with shared legal responsibilities associated with the business. Other than legal responsibilities, ownership and profits are also legally shared in this type of business.
  • Corporations: These businesses do not dispense individual ownership. These are run by multiple stakeholders sharing responsibilities amongst themselves.
  • LLCs and LLPs: The legal structure of these businesses is complicated as each player in the business has equal say in the functionality decision of the business.
User Ahaliav Fox
by
7.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.