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for related essay work get intouch through solomioro@gmail.com SOLE PROPRITORSHIP, CORPORATION AND PARTNERSHIP When starting business there are many decision that an entrepreneur has to make before committing their capital and other resources. One of the crucial decisions an entrepreneur has to make is whether to run the business and corporate, partnership or sole proprietorship. This decision exposes the entrepreneur to the various benefits and disadvantages of the business entity choosen. Corporate companies enjoy legal entity as the investors and the company assets are distinct and separate entity (Gitman, Juchau & Flanagan, 2015). If the business is unable to repay acquired loan and debts, only its assets can be used to pay creditors as the investors and owners are protected by the corporate veil. Sole proprietorship exposes the investor’s assets and property to liquidity in case the company is unable to repay its debts. Depending on the nature of corporation, most of the finances are generated from the company’s equity, sale of stocks as well as through loans. Sole proprietorship requires use of their own savings and contribution from close family member to start their business. The legal recognition of corporate allows them to access a wide range of land and capital base as compared to sole proprietorship and partnerships (Cooper et al., 2016). Bonds and stock are some of the ways of raising capital for a company however, the characteristics, benefits and risk exposed to stockholders and bondholders vary significantly. Bondholder has higher priority in repayment of the interest as compared to the repayment on dividend to stockholders (Carroll & Buchholtz, 2014). Bonds have fixed interest and maturity time upon which the principal amount and the interest gained is paid or defaulted depending on the financial performance and market conditions. Stockholders enjoy voting rights as well as dividends. They can also sell the stocks depending on the stockholders financial analysis if the company. Corporate companies release financial statements on specific intervals. This helps in enhancing accountability of stakeholder’s investments.

References Carroll, A., & Buchholtz, A. (2014). Business and society: Ethics, sustainability, and stakeholder management. Nelson Education. Cooper, M., McClelland, J., Pearce, J., Prisinzano, R., Sullivan, J., Yagan, D., ... & Zwick, E. (2016). Business in the United States: Who Owns It, and How Much Tax Do They Pay?. Tax Policy and the Economy, 30(1), 91-128. Gitman, L. J., Juchau, R., & Flanagan, J. (2015). Principles of managerial finance. Pearson Higher Education AU.