Entrepreneurship Essay Example | Topics and Well Written Essays - 500 words - 7

Entrepreneurship - Essay Example disadvantages of this form of business relates to the difficulty to raise capital and lack of continuity in situations when the owner is absent (Canada-Saskatchewan Business Service Centre, 2011). The other form of business is a partnership, which is commenced by a minimum of two or more individual, who owns and manages the business. The partners share unlimited liabilities of the business, and they run the business together. Some of its advantages relate to the ease of raising capital, and partners are jointly responsible for obligations of the business. However, the business has some disadvantages, which relates to the slow decision making and there is a chance of dispute occurring resulting to dissolution of the business. A corporation is a limited liability business owned by multiple shareholders, who elect the board of directors to run the business. The business is distinct from the owner and they are able to borrow money and sign contracts pay taxes and be sued, while profit is gained from the dividends or appreciation of stock, but they are not liable for the company obligations. Therefore, some of the advantages associated with this business relates to the ability to raise funds through sales of stock, while the shareholders are able to transfer their ownership easily by selling stock. The owner has limited liability; thus, it only covers the value of stock in the corporations. On the other hand, some of the disadvantages relate to the restrictions due to regulations and monitoring by government agencies, thus making it more costly to incorporate compared to other forms of organizations. The profit is taxed by the corporate tax rate, and shareholders’ dividends are not deductible from the corporate income. The limited liability companies are simple, and their liability is limited, thus is allows the entrepreneurs to keep their own assets and finances separate from the business. One of the advantages of the limited liability companies is offering