Finance

Financial Management

Assignment one

The three main forms of business organization include sole proprietorships , partnerships and Corporations . Sole proprietorships are businesses that are owned and controlled by individuals . The advantages with this kind of business , they are relatively small amount of capital more freedom since the owner can report to work at his own convenience time ,the owner has direct control of decision making , he /she enjoys all profits . Some of the setbacks with this kind of businesses is that difficulty in running of business in case of sickness , the business

may be mismanaged by the family members and also the business may collapse because of less capital

Partnerships are kind of business that are owned and controlled by partners . The businesses is formed and registered by individuals who decides to venture jointly in business . The goodness with this kind of investment is that the partners contribute capital equally towards the business , has broader management base , this is possible because the partners have different talents and specialization which is combined together in business . In case the business run into the loss , they will share this equally hence not overburdening one individual . Some of the disadvantages of this operation is that profit will be shared among them hence less , decision making may be hindered due to disagreement among members and also the business may collapse or run into difficulties due to death of a competent partner who was fully committed to the business

Corporations are large businesses which are either private...