Understanding The Different Types Of Business Organizations
Did you know that you can make use of SmartArt graphics in your PowerPoint presentation to better present the different business organization types? There are three major types of businesses and each type has its own characteristic. So, if you are an aspiring entrepreneur, understanding the different types of business will give you a clear idea. Be it Sole Proprietorship,a Business Partnership or even if you want a grand business plan that is fit for a large or medium size business corporation. So, before you sign your business application, read on and understand the responsibilities that corresponds to each business type.
What Type Of Business Suits You Best?
As mentioned earlier, there are three types of businesses namely:
- Single or Sole Proprietor
- Partnership
- Corporation
The three types of businesses have their own characteristics and operate in different ways. However, you can better present the said characteristics if you can use the right PowerPoint tool like SmartArt, such as the Horizontal Picture List SmartArt, (as shown above). If you want to place more text than photos, there are SmartArt that you can use too like the Horizontal Bullet List.
The first block shows the Sole Proprietor. As the name suggests, Sole Proprietors have only one business owner and all capitalization, business decisions and other considerations relating how the business is run and manage falls on one person alone. For the second type, however, (Partnership) has two or more business owners who contribute their share of capital for the business. For example, three business associates may decided to form a business, hence all business plans and its implementation are shared among them, deliberated and agreed by all partners before implementation. Needless to say, income and liabilities or gains or losses are also shared amongst the business partners.
A Corporation, however, also involves several businessmen who share or contribute their money to establish a business; and those who contribute are called shareholders.
Do You Prefer To Start A Partnership Or A Corporation?
At first look, Partnerships and Corporations may look the same, but they are not. The glaring difference is the scope of the business or to simply put it, the amount of capitalization, the number of people who have invested in a corporation is way bigger and than a partnership, and the way how a corporation operates. Although a partnership may later on evolve into a corporation, a corporation is more complex than a partnership, which has a more direct and simpler business approach than a corporation.
A corporation, on the other hand, has several types under its belt like Private, Non-Profit, Municipal and Quasi-Public. Yet among the types, the most popular is the private corporation, which still has two types, i.e. is the public and closely held corporation.
Learning the concepts or general ideas behind a business can help you decide which type suits you best. But in a nutshell, you and your possible business partner or shareholders will better understand the types of business if you can present it in an organized, easy-to-understand and creative way. Fortunately, you have the PowerPoint SmartArt graphics to help you with this task.