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fiasKO [112]
3 years ago
13

The basic concepts of financial management are the same for all businesses, regardless of how they are organized. However, a fir

m's legal structure affects its operations. The main forms of business organizations are: (1) proprietorships, (2) partnerships, (3) corporations, and (4) limited liability companies (LLCs) and limited liability partnerships (LLPs).
Social Studies
1 answer:
ad-work [718]3 years ago
3 0
<h2>The following are various forms of businesses and brief elaboration on how the legal structure of these businesses affect each: </h2>

  • <u>Proprietorship: </u>A proprietorship business is allowed to have a single owner who is responsible for the functional legalities of the business.
  • <u>Partnership:</u> A partnership business can have multiple owners with shared legal responsibilities associated with the business. Other than legal responsibilities, ownership and profits are also legally shared in this type of business.
  • <u>Corporations:</u> These businesses do not dispense individual ownership. These are run by multiple stakeholders sharing responsibilities amongst themselves.
  • <u>LLCs and LLPs:</u> The legal structure of these businesses is complicated as each player in the business has equal say in the functionality decision of the business.
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