TYPES and FORMS of BUSINESS

TYPES
a. Service Entity
The business derive its income from services rendered to clients,
in the case of professional services like of CPAs.

b. Merchandising Entity
The business is engaged in buying goods or any form of finished products and sells these at a profit

c. Manufacturing
The business is engaged in buying raw materials and supplies that will be converted into a finished product that will be subject to sale for profit.

FORMS

a. Sole Proprietorship
Capital is owned by a single person who has a complete control over business` decisions.


b. Partnership
A legal arrangement in which two or more persons agree to contribute capital or services to the business and divide its profits or losses.

a. General Partnership
each partner has unlimited liability for the debts incurred by the business.

b Limited Partnership
-One or more general partners
-One or more limited partners

c. Corporation
An artificial being created by law and is a legal entity separate and distinct from its owners.