Business Function Essay Example | Topics and Well Written Essays - 1500 words - 2

Business Function - Essay Example A business entity chosen should also draw from how much personal liability is involved and the entrepreneur’s ability to raise the capital required to begin the business because each entity requires a certain amount of initial capital. The various types of business include, the sole trader or proprietorship and partnership, which fall under the unincorporated firms and the private limited company and the public limited company that are under the incorporated firms’ category. With this, this essay will delve into the different types of businesses and their definitions and will also describe the three different types of business ownership with examples where possible. Lastly, the essay will further focus on the factors that should be considered by an entrepreneur when starting a business. Ideally, determining the type of business structure that an entrepreneur should choose draws from the way in which the chosen organization will meet his/her needs. Additionally, the type of business structure that an entrepreneur chooses depends on whether they want to run the same on their own or with the help of partners and associates. The three main business types, namely sole proprietorship, corporations and partnerships are discussed below. In essence, the sole trader type of business is the simplest of the three as it is easy to start and does not require too much paperwork while in partnership business form, ownership is shared between partners that contribute towards the start of a business based on a common business idea that they might have had. Incorporation is the other business structure where a business becomes a legal entity in which the shareholders of the same do not become legally liable for the activities, debts, or responsibilities of the corporation. The sole trader type of business is the simplest of the three as it is