Types of Business Organisations report

A profit company is a commercial business that gives out goods and services in exchange for money. In this type of business, they work to meet revenue worthy to make the business operational and make it move forward. In non-profit business or organizations, they work either to benefit the community or the public. In order to achieve their goal or make their business run, they must have enough capital to make the business move forward (Birt, Collier, Carlon, & Godfrey, 2011). Formation of different types of business organizations. The other type of business formation is partnership business formation. In this type of business formation, documents are not needed by the state of government, instead, the owners are supposed to have internal business agreements documents to proof there is a partnership in the business.

In partnership, the profits and losses are tables to individuals and also they are taxed individually according to the profits, losses and the other expenses they have occurred in the individual. The partners share the profits and losses equally. The partners are also entitled to file a partnership information return with the IRS annually. They are taxed on their total profits and loses they get from the cooperation (Bühring-Uhle, Kirchhoff, & Scherer, 2006).   Advantages of sole proprietor type of business formation. The advantages of a sole proprietorship is that is easy to start because no filling of documents, the state does not require the registration of this type of business, tax forms of a sole proprietor are not complicated. Disadvantages ofthe sole proprietor.

However this type of business has advantages; this type of business organization proprietors cannot accept capital or grant’s from outside this makes the company have small income and profits, in sole proprietor if the owners pass away the business will be shut down because no other person to operate it. Disadvantages ofa limited type of business organization. This type of business also has some advantages which include; the owners are supposed to create an operating agreement thatgivese the authority and limit them in decision making. Its hard for the owners to transfer making them havea limited life. Critically review and evaluate types of business organizations. Business organizations is anorganizations that needs funds, labor, machines, good, and services to clients to transact in the medium of money.

Recommendappropriate legal solutionss to resolve the area of conflict. An appropriate legal solution for resolving areas of disputes is the court. It’s good to resolve conflicts whenever they arise in our companies by use of legal solutions such as taking the parties in conflicts to the court. The court is entitled by the law to solve disputes among parties or companies. The court uses laws from the states constitution to settle the disputes. There are several sources of conflict resolutions which include arbitration and meditation. These two sources of conflict resolution don’t work inside the court (Spadaccini, 2007).   They have the same goal of fair resolution of conflicts. Both the two they accept the negotiations and they both allow the parties to control themselves to control the process and come out with the solution for solving the conflict.