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UNDERSTANDING BUSINESS STRUCTURING: WHAT IS BUSINESS STRUCTURING?

UNDERSTANDING BUSINESS STRUCTURING: WHAT IS BUSINESS STRUCTURING? STARTUPPLACE

This is an organizational activity that involves coordination and supervision towards achieving set goals. It states a company’s ownership, income and expenditure, tax and liability purposes.

An organization could be operating on a sole proprietorship, partnership, corporation, limited liability company or cooperative structure. Each structure has it different tax, income and liability implication on business growth

Sole proprietorship is quite the common form of business structure. Understanding the structure of a business helps in knowing how to manage the business and driving it towards expected set goals.

SOLE PROPRIETORSHIP
This is a one man business and it is considered the simplest organizational structure. It allows a business owner to take total control and management of the business activity. Examples of sole proprietorship business is largely seen in the open markets i.e small retail businesses, home based businesses etc.

PARTNERSHIP
This involves a jointly owned business. It is usually owned by more than one person. It gives room for brainstorming, large capital creation and joint decision making process.
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