The most prevalent form of sole proprietorship is a general partnership. In this kind of business structure, a business is owned and run by two or more people. The business’s debts and obligations are shared by each partner.
Similar to general partnerships, limited partnerships have one or more limited-liability partners. Limited partners are those partners. Beyond their investment, they are not liable for the debts and responsibilities of the company. An amalgam of general partnerships and limited partnerships are limited liability partnerships. All partners in this kind of corporate organization are only partially liable.
Moving on to organizational frameworks, Amazon has a solid structure in place. The business is split up into various divisions, including marketing, operations, and human resources. Each department is in charge of a particular sector of the business and performs a particular duty. Amazon is a centralized company as well. Top-level management makes all corporate decisions, and the chain of command is well defined. This kind of organization facilitates effective decision-making and guarantees that everyone is striving for the same objectives. There is no organizational structure at Amazon. Instead, the business functions as a single unit with several departments cooperating to achieve a common objective.
Contrarily, Coca-Cola is not a sole proprietorship. The corporation is owned by its shareholders and is a publicly traded company. The organization of the corporation is intricate, with numerous departments and subsidiaries. A structured organizational structure with a distinct level of authority exists at Coca-Cola. Top-level management makes all decisions for the company, while several divisions are in charge of various business operations.
Coca-Cola has a divisional organization as well. There are numerous divisions within the business, including Coca Cola North America and Coca Cola International. Each division has its own management structure and is in charge of a particular geographical area.
Sole proprietorships can be classified as general partnerships, limited partnerships, or limited liability partnerships. Coca-Cola has a centralized structure with a divisional structure, but Amazon has a functional and decentralized organizational structure. Coca-Cola is a publicly listed firm, not a sole proprietorship.
If a business is owned and operated by a single person who also bears all of the company’s legal and financial obligations, the business is said to be a sole proprietorship. This implies that the owner has all control over the business’s activities and financial resources, and that any gains or losses are solely attributable to them. A sole proprietorship is also not a separate legal entity from the owner, therefore any debts or liabilities made by the business may be settled out of the owner’s personal assets.