What is a business -A business is an organization engaged in the trade of goods, services, or both

to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. What are the form of business organization
SOLE PROPRIETORSHIPS A sole proprietorship is a business owned and managed by one individual. A sole proprietorship is not a legal entity. It refers to an individual who owns the business and is personally responsible for its debts. LIMITED PARTNERSHIPS
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The limited partnership is a hybrid type of business structure. It contains elements of both a traditional partnership and a corporation. The limited partnership form of business structure may be used when some interested parties want to invest in a partnership but want only limited liability and do not wish to exercise any control over the business activities of the partnership. LIMITED LIABILITY COMPANY

A limited liability company is a new and flexible business organization of one or more owners that offers the advantages of liability protection with the simplicity of a partnership, i.e. partners are not liable for business debts. Each partner reports business income on their individual tax return. CORPORATIONS

A corporation is a legal entity that has most of the rights and duties of a natural person but with perpetual life and limited liability. Shareholders of a corporation appoint a board of directors and the board of directors appoints the officers for the corporation, who have the authority to manage the day-to-day operations of the corporation. What are the types of business

1. Service business this provides intangible goods or services to customers. It usually generates profit by charging for labor or other services rendered to consumers, government or other companies.
2. Merchandising business this purchase products from other businesses or manufacturers and

sell them to customers. Merchandising companies usually have merchandising inventories in their current assets account.
3. Manufacturing business this converts raw materials, labors and overhead into finished

products that are available for sale to customers.

4. Other businesses. This includes businesses that cant be classified as service, merchandising or

manufacturers. Examples are agriculture and mining companies.

What are the advantages and disadvantages of each form of business organization

Sole proprietorship Advantages sole owner has total control over the operations of this business least regulated form of business other than records for tax purposes there are no legal requirements as to how the business must be operated usually one only needs to obtain a license or pay a fee to a local registering authority. Disadvantages all of the personal and business assets of the sole owner are at risk in the sole proprietorship a judgment against the sole proprietorship could reach into the personal assets of the sole owner liability insurance premiums are vary high. perhaps too costly for the resources of the sole owner due to the structure it may be difficult to obtain a loan. if there is insufficient collateral a sole proprietor may have to mortgage a loan or place another piece of personal property as collateral when the sole owner dies often the business ceases to exist due to the lack of structure in this business form Limited partnership Advantages The limited partner, as long as he remains passive, has no personal liability and risks only that which he invests. This low risk for the limited partner and the fact that the limited partner shares in the profits and tax deductions with no duties regarding the active conduct of business, may make it easier for the partnership to find investors. Disadvantages There is always a chance for a lack of continuity and clear cut guidelines amongst the partners concerning who does what and how to conduct business. Due to the state regulations , limited partnerships are subject to more paperwork than the general partnership. General partners maintain full personal risk. The limited partner risks losing the benefits of the limited partner status if they take any active role in the conduct of the activities of the partnership.

Limited Liability Company

Advantages - Limited Liability Companies, much like corporation, provide protection for their owners. If the organization has debts that it cannot pay, the individual owners will not be held responsible for those debts. - Owners can choose to have profits distributed anyway they would like. - Reduction in paperwork. - There is no double taxation. Disadvantages - Longevity of the company is based on the life of the members. The company will dissolve if a member goes bankrupt or passes away. - This is not the best form of business to set up if you are planning on distributing shares later to shareholders. It is not the best business entity to set up if you are planning on going public. - You may face new challenges in terms of the way that your organization files taxes.

Corporation Advantages potential for limited liability is one of the most important advantages of the corporate form of business structure. The liability of corporate debt is generally limited to the amount of money each investor has invested. a corporation can theoretically have perpetual existence. a shareholder may freely sell, trade or give away his stock unless this right is formally restricted by corporate decision taxation can be both an advantage and a disadvantage. Disadvantages due to the organizational structure in a corporation, a certain degree of individual control is necessarily ;lost by incorporation the technical formalities of corporation formation and operation must be strictly observed in order for a business to reap the benefits of corporate existence. the initial state fees that must be paid for registration of a corporation can be very high corporations are also subject to a greater level of governmental regulation than any other type of business entity. profits are subject to double taxation when distributed to shareholders in the form of dividends.
What is accounting Accounting is the backbone of business. Ethical and professional accounting forms a clear financial image of a business, and allows managers to make informed decisions, keeps investors abreast of developments in the business, and keeps the business profitable.