Different Types of Business Organisations: Formation, Management, and Funding

Business Law

Contents
INTRODUCTION...........................................................................................................................3
LO3..................................................................................................................................................3
Explore how different types of business organisations are legally formed along with
advantages and disadvantages of the formation..........................................................................3
Explain how business organisations are managed and funded along with Critically review and
evaluate types of business organisations.....................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Business firm have the consisting of the skilful activities in order to have the promotion of the
trade and commerce industry which plays as effective role in development. The formation of
business which make the dependence on their different circumstances along with nature of
business ach one has the presenting of the advantages and disadvantages (Cornforth, 2020). In
this report , there will be discussion on their existence of the different type of the organization
which tends to be legally formed along with different way in the business can be managed and
funded.
LO3
Explore how different types of business organisations are legally formed along with advantages
and disadvantages of the formation
In the business organization, the establishing of the business entity have the formation of
business which make the dependence on their different circumstances along with nature of
business ach one has the presenting of the advantages and disadvantages. So, in order to make
the detailed discussion there are considered to be the four ways in there which the business may
be setup which are such as the sole proprietorship, partnership, corporation, and limited liability
company or LLC.
Sole Proprietorship
This is the simplest level of business entity which have the minimal level of requirement of the
social security and the necessary level of permit and licenses. This is most choosing in the small
business as there to have the economical start which don’t have more level of government
involvements and taxation as compared to the other business (Costa and Maganaris, 2019.). As
there is envelopment of the one person tends to make less level of conflict in the partners and the
associates of family are non-existents. In this business theory can jeopardize their own personal
assists as the business is facing any level of financial issues. It takes an astute individual to
successfully operate this type of business. They are 100 percent responsible for all of the
decisions and raising capital.
Advantages
 The owner has receiving of all profits and all those profits are taxed as once.
 The owner have the right to make all decisions and control of company which is easiest
and least expensive
3