ASSIGNMENT
ENTERPRENEURSHIP DEVELOPMENT
EED421
DEPARTMENT OF CIVIL ENGINEERING
SCHOOL OF ENGINEERING
FEDERAL POLYTECHNIC BAUCHI
BY
HARUNA SALEH
STREAM A
HND2
18/128179
1. Sole proprietorship
2.Limited liability
3.partnership
4.corporations
1. SOLE PROPRIETORSHIP
A sole proprietorship type of business enterprise has a well-defined business structure. This type of
business enterprise is encouraged where business personal liability is not a major concern. From a legal
perspective, the owner of the business and the proprietorship are one and the same.
It’s Advantages
1. The sole proprietorship is the easiest business enterprise to set up. It doesn’t require any
documentation.
2. Registration of the proprietorship isn’t required by the State.
3. The business owner takes total control of the business and finalized all the decisions.
4. Tax forms are easy, simple, and straightforward.
5. Liquidation of assets is easy upon the owner’s death.
It’s Disadvantages
1. The proprietor is exposed to inexhaustible legal liabilities.
2. A sole proprietorship cannot receive capital from an investor outside his business.
3. There’s usually a great difficulty in receiving loans from banks.
4. The business liquidated immediately the owner passes away.
PARTNERSHIPS
The partnership forms of business enterprises is another type of business enterprise that opens to an
entrepreneur to form his business structure. A partnership is another sole proprietorship
enterprise that gives room for the business to house two or more owner at a time.
It’s Advantages
1. A partnership deed is very easy to form.
2. It housed groups of entrepreneurs with different skills and talents to bear the onus of running the
business.
3. If the deed so agrees, a partnership could keep thriving well, even if one of the partners passes away.
It’s Disadvantages
1. The partners are open to unlimited liabilities.
2. There’s usually a conflict of interest in the partnership deed. This could end up being
management conflicts.
3. Although the partners share the profit realize yet some may feel they are not compensated
enough for their hard work.
LIMITED LIABILITY
Another forms of business enterprises if you are actually concerned about the unlimited liability
that will be open to your business and can’t risk any of your assets in a lawsuit, then the better
business enterprise to set up is a limited liability company.
It’s Advantages
1. The proprietors have limited liability. Their personal assets are shielded from the company debt and
protected from judgments.
2. Owners can decide how the business enterprise settles it tax.
3. There is room for an unlimited number of shareholders.
It’s Disadvantages
1. The legal fee and accounting costs are costly compared to proprietorships.
2. A limited liability company requires documentation of articles of incorporation with
the government.
CORPORATION
Corporations type of business enterprise has the right to contract, buy, and transact property. It can sue
and also be sued by other parties.
It’s Advantages
1. Corporations attract skillful and talented employees.
2. It continues to do well, even if separate from its stockholders.
It’s Disadvantages
1. It’s the most difficult business structure and needs the service of a lawyer, to begin with.
2. Its profit could result in multiple taxati
