Summary of chapter 6 Essay Example | Topics and Well Written Essays - 250 words

Summary of chapter 6 - Essay Example furbish up proprietorship is a kind of craft formation where the enterprise is under the ownership of one individual. many of the advantages of this type of business form include, profit retention, it is very easy to form, ownership pride, control retention and revenue enhancement related advantages. Disadvantages for this type of business form include financial limitations, unavailability of permanence and unlimited liability.Corporations argon business entities that atomic number 18 separated from owners completely and are thus considered as legal entities. The stockholders are the corporeal owners of the entities but they have a board of directors who are responsible for the formulation of objectives and missions. The stockholders elect the board for their pursuances representation.Apart from these, other business forms that exist in the world are acquisitions and mergers. Acquisitions result from the buy or take over of one business ent erprise by another. Mergers occur when two business organizations make an agreement to combine and form a single organization. These mergers are of three types and these are vertical, horizontal and conglomerate.A business may also adopt a divestiture approach where spin offs and carve outs are done on the business. This allows the business to streamline its focus and operations. Another mode of a business distinction is franchising where a new franchise that uses the original business practices and trademark is formulated. An example of a successful fraternity that has used this model is