1. Sole Proprietoship
- one owner called proprietor
- unlimited liablity
- owner manages the business
2. Partnership
- two or more persons called partners.
- unlimited liablity.
- there is managing partner.
3. Corporation
- unlimited owners called shareholders.
- limited liablity.
- management is vested in the Board of Directors.
4. Cooperative
- unlimited owners called members.
- limited liability.
- management is vested in the Board of Trustees.
*** NOTE ***
Unlimited Liability
- if the business has unpaid debt creditors canrun after the owner and his personal properties to satisfy their claim.
Limited Liability
- if the business has unpaid debt creditors cannot run after the owner and his personal properties to satisfy their claim.
This is why corporation and cooperative is the more popular choice of prospective owners or investors.
YOU ARE READING
Accounting for Sole Proprietorship (reviewer)
Non-FictionThis is my reviewer and I wanted to share it with you. I tried my best for y'all to understand it. Hope you'll find this helpful for your study! "Balang araw masasabihin din nating, CPA na ako" - Nevest Love you all ABM and BSA students.
