In sole proprietorship involves a form where one does not require to perform any legal effort to start the business. In this position, the owner of the business has the full control of the business, unlike other forms like the general partnership where the operation is in the hand of two or sometimes more than two partners (Monk, et al., 2012). Every individual entitled to the business is required to contribute to the running or the functionality of the business. In a limited partnership, unlike other forms, business owners are regarded as the general head of the business and are responsible for the decisions that concern the business. Limited liability partnership on the other side does not have a general head. All the partners have personal liabilities for the debts of the business.
Under the similarities, the strategies of the involved individuals target maximum profit out of the business. Another area of similarity is that every business form requires start-up cash and is entitled to specific liabilities in the course of the operations.
Basic factors to consider when starting a business involve the availability of capital, the existence of labour and the consideration of the liabilities associated with the business. In the situation where an individual need more finance and support in the activities, then general partnership is the best form of business to go to (Monk, et al., 2012).
In the consideration of the liability risk, at the start of a business, the best form to choose for the business is the limited liability partnership since the risks are shared among the partners of the business. This implies that the burden of the risks is divided among the members involved.
Some of the features of a corporation include the ability of transferring ownership. It also has a centralized management and exhibits an endless life of operation. Furthermore, it has a limited liability and exhibits an ability to have a contract agreement.
In a corporation, the personal assets of the owner are secured from the creditors of the organization. Formation involves filling an article of the incorporation having the division of the corporation of the individual government (Monk, et al., 2012). To dissolve a cooperation, there involves a legal familiarization and clearance and takes especially when it does not serve the purpose that it was supposed to carry out. The corporation pays tax on the profit that remains after all salaries are paid. A concrete liability protects the individual from numerous risks in the business.
Corporate Governance is a relentlessly critical piece of business and definitive organization, extending to overall administrative issues and trade laws; and to globalized monetary angles, endeavors and affiliations, and markets. This workforce targets the growth of the economy.
Governance involves the formulation and implementation of the laws that rule the business whereas management involves the strategies that run the business activities in a corporation. The basic connection between the two terms is that they monitor the business processes and the activities that are involved.