Question

1. Name two other types of business organizations other than Sole proprietorship and define and explain the differences between all the three 2. Compare and contrast obtaining a charter of incorporation in the State of Georgia with obtaining one in the State of Delaware. 3. If a company obtains a charter of incorporation in the State of Georgia and decides to operate in both Georgia and the State of Ohio, what would be your advice regarding the owner arguing that he must have to establish his corporation legally in both States by obtaining charters of incorporation in both States. The owner claims that is a way to avoid violation of laws that may cause his business to be shut down in both States if discovered. 4. What is the difference between the "purpose" and the type of "ownership" of a corporation? 5. What is Treasury Stock and what may be reasons for a company to obtain treasury stocks? 5. What is the difference between debenture bonds and bond indenture? What is the difference between term bond and serial bond? . What is the difference between coupon rate and stated rate on a bond? Do these differ from bond yield? When bonds are sold at a market interest rate that is greater than the coupon rate, do you expect the bonds to be sold at par or a discount or premium; and what is the purpose of selling the bonds at a discount or premium?

Answer 1

As a rule only a maximum of One (1) question can be answered. In case no specific question is requested (maximum of 1), the first question is itself only answered.

Q: Name Two other types of of business organization other than sole proprietorship and define and explain the difference between all the three.

Answer:
The two other types of of business organization other than sole proprietorship are
(a) Partnership Firm
(b) Limited Limited Company (LLC)

Definition of Sole proprietorship: A sole proprietorship is also known as individual entrepreneurship or proprietorship. It is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity. This person is responsible for the business, including all liability and any profit or loss.

Definition of Partnership Firm: A Partnership firm is an association which is formed with two or more persons to run a business with a view to earn profit. Each member of such a group is known as Partner and collectively known as Partnership firm. These persons, or Partners, are responsible for the business, including all liability and any profit or loss.

Definition of LLC: LLC means a legally registered business entity which is limited by shares. Limited liability implies that all the shareholders are accountable for all debts which the company incurs. However, the liability is limited to the amount of money which they've invested in the company. It is a type of business structure that combines traits of both a sole-proprietorship and a corporation.

Difference between the three:

Point of consideration	Sole Proprietorship	Partnership	LLC
Owner	Sole Proprietor	Partners	Shareholders
Liability	Un-limited	Shared between partners	Limited
Responsibility of Management	Sole Proprietor	Partners	Board of Directors
Earnings to the owner	Profits	Profits and/ or Partners Salary	Dividend
Subject to regulations	Low	Moderate	High
Formation	Easy	Moderate	Difficult
Dissolvability	Easy	Moderate	Difficult