Section 5
Types of Business Organizations
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Boundless Finance
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by Boundless
4 concepts
Overview of Organizational Structure
Business organizations can be structured in various ways, both as legal entities and in terms of internal management processes.
Pros and Cons of Sole Proprietorship
The sole proprietorship structure has the benefit of simplicity and control but the drawback of unlimited liability.
Pros and Cons of a Partnership
The partnership structure has the benefit of simplicity and control but the drawback of personal liability for the partnership's activities.
Pros and Cons of a Corporation
The corporate structure is less simple to found and maintain but has the advantages of limited liability and perpetual life.