Free Paper Sample on Business Organization

Introduction

A business entity is an organization designed by one person or many people to engage in business and trade activities (Bezrukova et al., 2017). Business entities have various types: sole proprietorship, partnership, corporation, and limited liability companies. A sole proprietorship is where one person is the sole owner of the business and manages all business activities (Bezrukova et al., 2017). The partnership involves two or more people engaging in business activity and sharing the profits equally (Nechaey & Antipina, 2016). A company is a separate legal entity designed by a group of individuals to participate in business activities. In contrast, a limited liability company is a business whereby the owners are not liable for their debts.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Partnership

Being Cardi’s attorney, I would recommend her to choose a partnership, because her friend Nikki is willing to invest in her baking business, and they can be partners. Although Nikki does not have baking knowledge, they can help each other manage the bakery, whereby Nikki will oversee all business activities, including keeping records and books of account. Cardi will take part in bakery activities (Nechaey & Antipina, 2016). This business entity is essential because Cardi will not have to share losses alone. After all, partners share profits and losses equally in this type of business. It is also easy to start because it does not require legal formalities upon formation (Bezrukova et al., 2017).

Conclusion

Although the partnership has its advantages, it also has disadvantages where wrangles can arise between the partners and can disrupt the business. It is also challenging to get business loans from lending institutions because they lack faith in them. In the case of losses, the owners incur losses because they do not have a separate legal entity from the owners. It will be a disadvantage to Cardi since she is not used to sharing profits realized from the bakery. This partnership will help her business grow, and she will be able to provide for her daughter.

References

Bezrukova, T. L., Stepanova, Y. N., Shanin, I. I., Busarina, Y. V., & Nesterov, S. Y. (2017). Aspect-Oriented, key-Index based regional business entities' evaluation framework. European Research Studies, 20(3B), 183. https://www.ersj.eu/dmdocuments/2017-xx-3-b-18.pdf

Nechaev, A., & Antipina, O. (2015). Analysis of the Impact of Taxation of Business Entities on the Innovative Development of the Country. International Journal of Economic Perspectives, 9(3). http://search.ebscohost.com/login.aspx?direct=true&profile=ehost&scope=site&authtype=crawler&jrnl=13071637&AN=116840497&h=g0q%2FO22odlsd%2B4uJQrwQ96BSvTl9keJUu7h%2B7%2B9NCWwx8HswHLtpx3yNgdXeEnitykeuCI88%2BhjogGqzXU%2B%2Frg%3D%3D&crl.