Advantages and Disadvantages of General Partnership and Sole Proprietorship
Jack Smith and Carl Jones are considering opening a lawn mower sale and service center. Jack and Carl come to you for a recommendation as to which business organization should be used to conduct their business.
Provide a brief summary of which form of business organization you believe to be the best form of organization to conduct their business and the reasons for your recommendation. Be sure to include an analysis of the advantages and disadvantages of other forms that may be available and the reason for your recommendation despite the disadvantages of your recommended form of business organization.
Your analysis should be no more than one typewritten page, in Times New Roman 12-point font, double spaced lines with one-inch margins on top, bottom and sides. Do not repeat the facts.
Business Organizations-Summary
Name
Subject
Date
Business Organizations-Summary
The two parties should start a general partnership with the co-ownership form of business organization. This type of business organization involves two or more people who have agreed to carry out a business voluntarily. In this case, Jack Smith and Carl Jones have decided to start a company dealing with mowers. A general venture of Co-ownership presents the involved parties with a joint right to manage business activities and the control of sharing of profits or losses. The profits and losses made from the two businesses would be shared equally among the business owners.
If a general co-ownership form of business undergoes dissolution, the involved parties will pay creditors and the partners' loans. They would also return the capital contributed by the partners in the beginning and the course of the b...