Forms of business organizations

A business may be privately organized in three different forms, These forms are the sole proprietorship, the partnership and the corporation.

A sole proprietorship is a form of business organization owned and operated by one person. Sole proprietorships are the most numerous kind of business organization. The reason for their popularity is that they are the easiest and least costly to organize. Sole proprietors own all the profits of their enterprises. They don't have to pay the special taxes placed on corporations. Among sole proprietors are farmers, professional men, small storekeepers and small manufacturers.

The disadvantages of a sole proprietorship are unlimited liability that each proprietor faces. Unlimited liability means, if a business fails, the owner of the business must assume the debts and in some cases declare personal bankruptcy; a sole proprietorship has limited capital. The money that a proprietor can raise is limited by the amount of his or her savings and ability to borrow.

A partnership is a form of business organization that is owned and run by two or more persons. Partnerships are easy to form, relatively small to control and often gel tax benefits from the government. Partnerships are not subject to special taxation. Partnerships can be found in such professional fields as medicine law, accounting, insurance and stockbrokerage.

A cooperation is a form of business organization created under a government charter. A corporation charter is a kind of license issued by the state in which a corporation is created.

A person who owns a stock certificate is called a stockholder. Shareholders are the owners of a corporation and their shares of ownership are represented by stock certificates A corporation is managed by the Board of Directors.

A corporation acts like a legal person, It has the right of an individual, it also has the right to own properly, to buy and sell, the right to sued and be sued, and it must pay taxes.

It is difficult and expensive to organize a corporation. The process of obtaining a charter usually requires the services of a lawyer. Corporations are subject to special taxes.

The economy of the united states of america

The USA has mixed economy that has maintained a stable overall GDP growth rate? a moderate unemployment rate, and high levels of research and capital investment. The government provides incentives to encourage the production and consumption of certain types of products, and discourage the production and consumption of others. The USA is largest trading nation in the world, exporting and importing more goods and services that any other country. The US economy have 4 sectors. the first s. provides goods that come directly from natural resources. The second sector includes manufacturing and generation of electricity. The third sectors, made up of commerce and services. The fourth major economic sector deal with recording, processing, and transmission of information, and includes the communication industry. The key components of the US economy are manufacturing and energy. The leading categories of the US manufactured goods are chemicals, industrial machinery, electronic equipment, processed foods and transportation equipment. Service and commerce sectors – the largest sectors of the US economy in terms of output and employment.

The Internet began in the 1960s as a small network of academic and government computers primarily involved in research for the US military. the communication system in the US are among the most developed in the world. Television, newspapers and other publications provide most of the country’s news and entertainment.

The country’s major mineral resources are phosphate, gold, silver, iron ore, copper, lead, zinc, natural gas and coal. Cultivated farmland constitutes 19% of the land area of the country and makes the US the world’s richest agricultural nation. Agricultural output in the United States has historically been among the highest in the world. Cattle production, hog production, and chicken production are widespread throughout the United States.