Forms of Commercial Organization

| A sole proprietorship is easy to create; there is minimal creation cost and time.The single owner has autonomy in decision making; sole owner makes all decisions related to the business and has complete ownership of business’s finances.

Sole Proprietorship: A type of business that is owned by and run by one person with no legal difference between the business and the owner. It is easy to form with no cost or time to initiate. It gives the owner the ability to self-govern the business. There are drawbacks; only one owner can be established not allowing a partner. Also, unlimited liability puts the owner’s personal assets in jeopardy with the creditors.

• Control: A sole proprietor has total control of the company and they make all the good decisions and they must deal with decisions that did not turn out the way they intend. The other notable factor in being a sole proprietor of a business is what would happen to the business if the owner became ill or died; typically the business would stop operations based on the structure and debts would need to be resolved as well as customer commitments would need resolving based on the type of business.

* Single Ownership - The single individual always owns sole proprietorship form of the business. The individual owns all assets and properties of the business and bears the risk of losing or gaining from the business.

Sole trader – self-employed and responsible for all business finances. Sole traders have to adhere to legislation such as Consumer Protection Act 1987. This holds you accountable for knowingly selling faulty products that cause harm to a consumer. They must also pay income and National Insurance Tax and provide a ‘self-assessment tax return’ each year.

I own and operate Pretty Baked on my own. I chose to be a sole trader because it is the simplest and cheapest structure to establish especially when opening a small business like I am. I receive all the profits but I also suffer all the losses. This structure is suitable for my business because it is easier for a small business and there is no one else to blame but my self. If I put my self in a bad situation, I would have to get out of it my self, which will make me a stronger business woman for further problems to come. Being a sole trader means that I have unlimited liability. This is not necessarily a good thing but it is what I chose, as I have to take responsibility for my business. Due to the unlimited liability, I may be forced to sell

Sole trader-it’s a business that is owned by only one person and it can have one or more employees. This type of business organization often succeeds because the owner has total control of businees, the owner keeps all profit and it’s cheap to start-up,but also it can be difficult to raise financial,it may be difficult to specialise or enjoy economies of scale and can also have problems with continuity if sole trader retires or dies.

Is the most common business type, where the business is operated and owned by a single individual. In this type of business, the sole proprietor provides capital, does not share profit or loss and runs the business alone. As such, the business and the owner are indistinguishable for tax and legal purposes (Dlabay, 2011). To differentiate this business from other business types, a sole proprietorship is discussed under the following characteristics.

Up Arrow Callout: Public Limited Company (plc) What is a Sole-trader? (Builder/local shops/hairdresser) Sole-traders are individuals who own and operate their own businesses.

Still today sole proprietorships are the most popular form of starting a business and having ownership. The definition is a business owned by one person and not incorporated with any others. In the business world sole ownership is not separate and cannot be split apart from the owners personal assets (Fairfax, 2011). The unincorporated business is exposed to unlimited liabilities and loss of personal asset protection. In today’s commerce environment having unlimited

A Sole Proprietorship is a single individual owner and operator. This includes business owners and independent contractors. Most of the time, a Sole Proprietorship includes services, such as your local coffee shop, rather than the manufacturing of goods which costs more money to start. Sole Proprietorships are usually small businesses and small businesses make up three-fourths of U.S. businesses and a vast majority of the economy. Sole Proprietorships are fairly easy and cheap to start. Quick and easy decisions can be made because the owner and operator is the single individual business owner. Finances and trade secrets can be kept secret, all profits belong to the owner, and they can have complete and total control of the decisions being made. A site will need to be established, this could even be a home office depending on the business. There is less government regulation and tax exempt accounts that can be used for Sole Proprietorships. Some cons to Sole Proprietorships include no liability or back-up money. This means that your personal belongings such as your house and your car can be taken if money is due. There are limited sources of money as well. The single individual responsible must also be healthy and working and single handedly skilled in many areas.

There are several categories under which business entities can be formed. Sole Proprietorship, Partnership (General or Limited), Limited Liability Companies (LLC) and S or C Corporations are the options entrepreneurs have to give legal form to their business. Each has distinctive characteristics on their tax treatment and legal procedures. The decision of what kind of entity form affects the daily operations and investment opportunities for the business, hence the importance of selecting the entity that can better serve the business model and the owners.

A sole trader has the power to make decisions within the business whenever he or she feels it’s necessary but the sole trader only answers to him/herself.

Sole proprietorship refers to a situation when a business is owned by one person. It is normally the simplest way to initiate a business since the sole proprietor is fully responsible for all the activities and operations. In addition, he or she is responsible for all the obligations and debts related to the business. Therefore, all the profits go either to the sole proprietor or are injected back in to the business as investment. It is characterized by unlimited liability, which means that a creditor with a claim against the

The purpose of this structure is to create independent small businesses or enterprises that can rapidly respond to customers' needs or changes in the business environment. The supervisor tends to have a more personal relationship with his or her employees.