Research Paper Essay Example | Topics and Well Written Essays - 2750 words - 1

Research Paper - Essay ExampleExchange of a commodity between individuals with the aim of deriving mutual benefits or with meshwork motif is one of the available explanations for the term duty. The definition however extends to multiple transactions and disqualifies isolated transactions, much(prenominal) as a single exchange in a persons life, as business. A single exchange transaction or just a few number of exchange transactions analogous three times in a persons lifetime, for instance, does not identify the individual as a businessperson and therefore fails to offer an high-fidelity definition of business. A more accurate definition of business is therefore an activity whose primary objective is wealth creation through exchange of goods and services. This definition separates such transactions as sale of personal property as a disposal strategy because of lack of profit motive. Some examples of activities have alike been identified with the definition of business. Accordi ng to Maheshwari (1997), all activities in the field of commerce and industrial based activities meets the definition of business and this includes activities in basic industries, processing and manufacturing industries and the meshing of ancillary services, distribution, banking, insurance, transport, among other sectors (Maheshwari, 1997, 1). ... Its formation is simple, requiring no formalities, and it requires small amount of capital to start because its scope can be narrow. The proprietor too enjoys all the derived profit from the business and has the doctor decision making right, a property that allows for faster decisions because there is no consultation obligations. Sole proprietorships however faces a number of challenges such as difficulty to raise sufficient capital for ventures, limited sources of capital because of lack of collaterals, and lack of specialization that limits quality of goods or services from a sole proprietorship business (Kelly and McGowen, 2010 Gitm an and McDaniel 2008). Lack of expertise in management and service delivery possibility of the proprietor overworking himself are other limitations of the form of business. The business life is also limited to the life of the owner (Schneeman, 2012 Miller, n.d.). Partnership is another form of organization for business activities and defines a group of individuals, normally between devil and twenty people, with a common objective of making profit. The form of business has advantages such as a wider capital base from members contribution, possibility of rich skills and set about from members that can be organized into specialization, rich sources of ideas for decision-making. Members also share losses and this facilitates continuity because of reduced impacts (Pride, Hunges and Kapoor, 2010 Kimmel, Weygandt and Kieso, 2010). Disadvantages however include sharing of profits, lengthy decision-making processes that may also experience disagreements and unlimited liability of business partners (Sutherland and Canwell, 2008). Cooperatives have such advantages as low operation