An integral component of entrepreneurship is business ownership. It establishes the owners’ financial and legal obligations as well as how earnings and losses are distributed among them. There are four different forms of business entities in the US: a corporation, a limited liability company (LLC), and a sole proprietorship. The choice of business ownership relies on a number of variables, including the size, nature, and objectives of the organization. Each form offers benefits and drawbacks.
The simplest and most typical type of business ownership is a sole proprietorship. One individual, who is also accountable for all of the company’s debts and obligations, owns and runs it. The business belongs to the owner, who also keeps all of the profits. However, the owner is equally accountable for any losses or potential legal troubles. Small businesses, such as grocery stores, neighborhood shops, and home-based enterprises, frequently adopt the sole proprietorship structure. McDonald’s.
McDonald’s is not a one-person business. It is a corporation, a form of business ownership in which the company’s debts and responsibilities are not personally incurred by the shareholders who own it. A company is legally distinct from its owners, and as such, it is able to enter into contracts, bring legal actions, and own property. Due to the fact that McDonald’s is a publicly traded company, the general public can buy its shares on a stock exchange.
A chain of restaurants in the Philippines called Mang Inasal is known for its grilled chicken dishes. It was established by its creator, Edgar Sia II, as a sole proprietorship in 2003. But in 2016, it joined the publicly traded Jollibee Foods Corporation, which also controls other fast-food restaurants in the Philippines and other nations. Mang Inasal is therefore a corporation’s subsidiary rather than a solo proprietorship.
In conclusion, firm ownership is a critical component of entrepreneurship that establishes the owners’ legal, financial, and profit-and-loss allocations. In the United States, there are four different forms of business entities: a sole proprietorship, a partnership, a corporation, and a limited liability company (LLC). The choice of business ownership relies on a number of variables, including the size, nature, and objectives of the organization. Each form offers benefits and drawbacks. McDonald’s is a business, but Mang Inasal was initially a sole enterprise before becoming a division of a larger company.