FINANCE. FINANCE. 2. Finance. 6/4/2019. Various Organiz

Running head: FINANCE
Finance
6/4/2019

FINANCE 1
Various Organizational Forms
Limited Liability Companies one of the option that could be chosen by a group of
accountant to start an accounting company. This structure of the business is hybrid of
corporation and partnership (Reuting, 2014).
Strength – The key strength of the limited liability is that members of the company
are not personally liable for the obligations.
Weaknesses – Members of the company have to take the accountability for paying the
taxes from their share of the income.
Partnership is said to be the entity that possess more than two owners and has equal
control, except the contract of partnership states otherwise or the business structure is
arranged as the limited partnership (Clifford & Warner, 2017).
Strength – The income of the partnership is earned by the partners.
Weaknesses – The liability of the partners for paying the debts is unlimited.
A Corporation is one of the legal entities that are established for operating business.
Corporation is the separate entity from the ones who handle the accountability of the business
(Mitchell & Fontana, 2010).
Strength – The Corporation raise liability to the shareholders only to their invested
amount. This business structure saves them from other liabilities.
Weaknesses – It this business structure is comprised of number of investors with
unclear interest, the team of the management can run the business deprived of real oversight
from the owners.