Business Structure
Shirley Ortez
FIN 571
Kevin Suber
January 8, 2016

Business Structure

Introduction:
Initiation into the consumer market, business owners must explore its competitive market, its contribution and determine whether it can be fruitful. Once analyzing its contribution, stablishing business structure equipped to support the company's necessities and requirements in efforts to use it as a guideline for the owner's potential business plans. In the following passage, the rewards and shortcomings of common business structures utilized in today's market.
Sole Proprietorship & Partnerships: Sole-proprietorship is a business entity directed by one individual. A particular structure that benefits business owner is the low licensing fees, and the simplification of the process attract first-time business owners to implement this particular business structure. With its appealing attributes, other major factors to study are the financially liability linked to a sole proprietorship. Business's financial obligation and personal equity become one source of funds. It indicates that a sole trader is responsible for any financial obligations the business accumulates and the owner's personal finances can me liquidated to satisfy the business debt.
The secondary business structure commonly used is a general partnership and limited partnership, like a sole proprietorship, general partners are equivalently responsible for a business's financial commitments and daily operations. As for a limited partnership, each associate is limited to the liability of his/her investment (Films Media Group, 2011). Though both sole proprietorship and partnerships share the perks of reduced licensing fees, both partners can be exposed to liquidations of their personal asset if the business is neglectful to comply with its monetary responsibilities.