Question

What is the worst form of business and why? What is the best form of business and why? Sole proprietorship, Partnership, Limited liability company (LLC), Corporation

Answer 1

The worst form of business is sole proprietership , because owner of the business has unlimited liability . In sole proprietorship owner can lose his house, cars, bank account and any other personal assets to settel any business debts and bankruptcy. there is also difficult to raise the capital, as the difficult of attracting outside capital forces the owner to relay on his own savings and loan from his freinds and family. owners in sole proprietership controls everything so owners are not allowed to take vacation frequently. Another disadvantages of sole proprietership is that business will liquidated when the owner passes away.

partnership is the best form of business to start . It is the easiest organization type to create, as it can only require the agreement which is either verbal or in written form. under this owner manages and control the business and distributed the profit accordingly and pay the taxes based on their portion of income. partners can share the responsibility of the running of the business. partners can also share the decision making and help each other out when they needed to. partnership firm is easy to form , manage and run. there should be privacy in the business as affairs of the business are kept confidential between the partners.