Business Basics Essay Example | Topics and Well Written Essays - 500 words

Business Basics - Essay Example Secondly, Martha knows that she will be the sole owner of the business when she starts-up as a sole proprietor. She is going to posses all authority and makes decision on behalf of the Apex Company. She will as well have the mandate to sell or transfer the company to another individual business and make important business decisions at her discretion. Probably, the accountants concerns about running a sole proprietorship business are the risks that are involved mainly to the owner of the business. Legally, these risks are not treated separately from the business. They seem to be aware of some of the disadvantages of sole proprietorship business. They know that a sole proprietorship business has a liability disadvantage or risk. When Martha starts-up Apex as a sole proprietor business, she will be held directly responsible for any debts, losses, or violations that come from the business. For example, if the company incurs debts that must be paid back, Martha as the sole owner will repay the debts from her own personal funds. Again, she can be sued for any unlawful acts done by the employees, which is unlike other business structures. Additionally, if she becomes deceased or incapacitated the business will not continue since the owner and the business are treated as one (Madura, 2007). A partnership business is formed by two or more people who wish to come together to start a business. For a new business structure, partnership is a good choice of legal structure (Madura, 2007). This type of business has several advantages and disadvantages as discussed below. Capital- because of the business nature, the partners are the ones to fund the business with the start-up capital. The more partners they are, the more money they contribute for the business, which allows potential growth and flexibility. This also means more profit, which will