Introduction to discussion
When a person wants to begin a business, he must take into consideration the different types of ownership and organizations. Ownership may be a sole proprietorship, a partnership, or even a corporation depending on the type of business. Once the business has begun, the structure of the business has to be equivalent to the type of business or managers who will be running the different parts of the business. In order for a business to run smoothly, managers must be able to understand technology, adapt quickly to changes, skillfully motivate subordinates, and realize the importance of customer satisfaction.
Levels of private ownership
The United States has more and more people trying to start a new business everyday (Boone and Kurtz, 2003). Before an entrepreneur is able to begin a small business, he needs to understand and choose the type of private ownership. Sole proprietorship is a form a business ownership in which the company is owned and operated by one person (Boone and Kurtz, 2003); this is known as the most common form of business in the United States. This type of ownership has unlimited personal liability for business debts. This disadvantage has no distinction in separating between the sole proprietor’s status as an individual, and as a business owner. The owner must operate within his personal funds or money borrowed from loan institutions. If the business fails to make profit and becomes unable to repay any of the loans borrowed, the loan companies have legal right to take all earnings and personal assets until the loan is paid off. This disadvantage also limits the potential for expansion for small businesses. A sole proprietorship has the advanta ...