BUSINESS ETHICS

• Sole Proprietorship


  • Owned and managed by a single individual
  • Complete legal liability of the owner who has unlimited power over the business
• Partnership


  A business partnership binds two or more people into contributing money, property, or industry to set up a business
• Types of Partnership


  • General partnership
  • Limited partnership
  • Limited liability partnership
• Corporation


  • Can sign contracts, borrow and lend money, sue and be sued, hire people, own assets, and pay taxes
  • Separate legal entity from its shareholders
  • Can borrow large amounts of money from banks
  • Sell bonds to investors
• Shareholder


  A person, company, or organization that owns a stock of a corporation
• Bonds


  Loans made by an investor to a company
• One Person Corporation


  • A corporation with a single incorporator or stockholder
  • Has features of a corporation and a sole proprietorship
• ADVANTAGE OF SOLEPROPRIETORSHIP

  • easy to set up
  • only one decision maker
  • utmost secrecy
• DISADVANTAGE OF SOLE PROPRIETORSHIP

  • unlimited liability of the owner
• ADVANTAGES OF BONDS

  • limited liability of shareholders
  • has to more financial resources
• DISADVANTAGES OF BONDS

  • pays its own taxes
  • difficult upkeep due to many processes concerning many shareholders
• ADVANTAGES OF ONE PERSON CORPORATION

  • the owner's liability is limited to financial investments
  • the owner's personal assets are protected
• DISADVANTAGES OF ONE PERSON CORPORATION

  • The business is taxed as a regular corporation
  • the owner's dividends are taxed separately