Create a 5 pages page paper that discusses compare and contrast two types of business ownership.

Create a 5 pages page paper that discusses compare and contrast two types of business ownership. Every business commences in its way and can be terminated at a particular time and for various reasons. Sole proprietorship type of business can be removed through owners’ death and by contract. Unlike a sole proprietorship, a partnership requires two or more people. It also has its advantages and disadvantages. The benefits of collaboration include the fact that it’s easy to start and has no need for annual meetings. Weaknesses ages, on the other hand, include the fact that owners are subjected to unlimited liability, which leads to disputes. Nevertheless, these two forms of business have their similarities. Similarities include the freedom that both companies enjoy from government regulation and the determination of business duration.

Keywords: Sole Proprietorship, Partnership, Partner, Business, Liability

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There are a wide variety of businesses recognized worldwide. A company may be established to make profits or help a particular group of people without making profits. In this paper, sole proprietorship and partnership forms of business ownership is discussed. Spadaccini defines sole proprietorship as “a business owned and managed by one person” (2007, p.4). A sole proprietorship can be referred to as one of the simplest and most popular forms of business. It is not a legal entity. thus, the owner of the business is fully responsible for its profits and debts. The business fully operates under the name of the owner or by use of a fictitious name. The owner of a sole proprietorship type of business only needs to register his/her name and get a good location, and the business can begin after this process. He is fully liable for all the debts and profits incurred. if a sole proprietor gets into a financial crisis, the creditors can sue the owner of the business, and if this lawsuit is successful, the business owner will pay all the debts (Spadaccini, 2007).&nbsp.Collaboration can be formed through various methods such as handshakes, oral agreements, written agreements, and when people engage in a joint business. Key factors about a partnership are that two or more people own it, and partners can act on behalf of the other partners. For example, by hiring employees, the partners share profits and losses, and the business can only commence when two or more people from the company (Clifford and Warner, 1981). According to Medina, “partnerships may be classified in three ways. (1) as to object, (2) as to liability, and (3) as to the period of existence” (1988, p.32)

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