Sample Research Proposal on Business Organization

A business organization covers the premise of rules that governs in the formation and operatin of the different entities by which it is being organized for the purpose of business.  There are four types of business organizations wherein all of which has different advantages and disadvantages.  In this paper, two of the basic type of business organization will be explored and contrasted; they are the sole proprietorship and partnership. To begin with, sole proprietorship from the term itself connotes single ownership that is being controlled by a single individual, thus, risking all assets owned but at the same time reaping all the prospects of profit.  Moreover, a sole proprietor by definition has no competitors within the organization with whom to vie for control; he is his own boss, simply put (Froikin 2-3).  On the other hand, partnership is considered to be an extension of sole proprietorship but with the exemption that it is run by two individuals.  There are few differences and contrast between sole proprietorship and partnership.  One difference is the liability dealings. In sole proprietorship, the owner is subject to unlimited liability.  Meaning, not only the assets of the business will be available to satisfy the claims of creditors, but it is with the inclusion of all the property the owner owns.  Whereas, in partnership, the partners are still subject to unlimited liability to the creditors, however, the partnership cannot be sued in its own name or sue including the properties owned by both parties. Second difference is in terms of the duration of the business.  Sole proprietorship entails that the limitation is limited in line with the duration of the life of the owner upon which terminates upon the owner's death or withdrawal from the business.  Consequently, the withdrawal of any partner terminates its existence but a new partnership may emerge. Third is in the terms of ownership.  In sole proprietorship is absolute whereas in partnership, it is bind in a means of a contract whereby it states that it both individuals shares common ownership, management and control of the business.  In other words, there coexists a common law in the partnership type, whether in written or plainly implied.  The common law rules regard both individuals position as being equal in the exemption in terms of the amount of capital being invested by a partner.  Nevertheless, whatever the contractual agreement in the provisions of the formation of the partnership, the common law applies adhering to the principles governed in the partnership whenever an issue arises.  In liue to the contract that binds in partnership, the signage of a  partnership agreements in inevitable by many partners that further clarifies and highlights the rights, duties, and obligations of the partners, and also provide rules and procedures for partnership matters.  With this regard, the contract signed by partners is a formal document for the purpose in the recognition of the partnership while the signage of partnership agreements is entirely for the partners involved. Further, sole proprietorship and partnership shares the same dealings when it comes to the registration wherein there is no need for both types of business organization to register the business with any government entity and in the event that the proprietor want to operate under a fictitious business name, same as in partnership, according to Froikin, the need to file a fictitious business name statement, or statement of partnership with the county or city the business is in place (7).