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Advantages and Disadvantages of a Corporation

17Jul

By AnchitaNo Comments

Business

Advantages and Disadvantages of a Corporation

When you decide to start your own business, it can be pretty daunting to zero in on what it should look and function like. This article will specifically deal with what a corporation is as well as its pros and cons. So let us have a look. WHAT IS IT? In dictionary terms, a corporation is an association or a body formed and authorized by law to act as a single person although constituted by one or more persons and legally endowed with various rights and duties including the capacity of succession. In simple terms, it is a type of business organization that is separate and distinct from its owners. And it differs from other types of business organizations like, for instance, a partnership or a sole proprietorship in its characteristics. Depending on these characteristics, corporations c...

Limited Liability Partnership (LLP) – Advantages and Disadvantages

It has been increasingly observed that entrepreneurs have started opting for limited liability partnerships(LLPs). This combines the characteristics of both - a corporation and a partnership. So let us discuss some of its advantages and disadvantages. What is a Limited Liability Partnership? A limited liability partnership or an LLP is an alternative corporate business form. It gives the benefits of limited liability of a company and the flexibility and ease of a partnership. In other words, some or all partners of an LLP have limited liabilities. Also, it continues to function even if the partners change. It includes some rights and duties for the partners which are regulated by an agreement between the partners. An LLP is a separate legal entity, liable to the full extent of its asset...

Limited Company Advantages and Disadvantages

An organization in which the liability of the members is limited to the sum they have invested is called a limited company. Its finances are owned by itself, not by the members. The company’s profits are also in its name which can then be shared. These companies could be limited by guarantee or shares. Companies limited by share are of two types – public companies and private companies. While anybody can buy shares of a public company, who can be the members of a private company is defined by the law. Limited companies are common in many countries. Though it is termed as limited company everywhere, their rules vary from country to country. Each company has a unique name of its own. If the suffix Ltd or Limited is given to the company name, then it is a private limited company. In normal...