Forms Of Organizations

There are many types of organizations. We can separate them intotwo major divisions: organizations existing to create profitsprofit organizations. Includes business entities andorganizations that exist primarily for another purposenon-profit organizations. E.g: charity organizations. Types of Business Entities and their common characteristics:.Sole Proprietorships. Sole proprietorships are business that are owned and operated byone person: the sole proprietor. The owner and the business, isthen the same. For tax purposes, a sole proprietorship is not ataxable entity, and any profits earned by the business are taxedon the return of the individual. The proprietor must develop anaccounting system that distinguishes between hisher personalaffairs and that of the business. .Partnerships.Partnerships are businesses that are owned by two or moreindividuals. For small partnerships, the agreement is often anoral agreement between the partners but it is highly recomme...