Healthcare Business Organization Paper

byplay placement Paper Healthcare has drastically changed oer the years in the United States. As our population is growing in size, a shortage of the number of health care professionals is withal growing. Entrepreneurs stomach greatly benefited the world of health care by assisting with creating to a greater extent jobs, producing products and go to assist and meet the growing needs of the population, and starting new vexation physical compositions to meet the needs of todays economy. There are various forms of organizations and choosing the correct one is important, as it will affect the success or failure of the craft.Define the Different rolls of Business Organizations Sole proprietorships are an by the piece owned demarcation line where the individual is authorise to all of the pay and also responsible for all of its debts, liabilities, taxes, and claims that may be made toward the organization. Partnerships are businesses started by 2 or more individuals. In this form of business each individual is as responsible for the liabilities, care, as well as entitled to a portion of the profits. With the different experience and skills each member brings to the business will increase the chance of success.Corporations are created by law and owned by shareholders. Rather than actual property, the proprietors own stock or interest. by selling stock the sens mess raise the capital o help with establishing business and increase financial gain. According to SCORE Associations (2003), hold indebtedness companies are a new and flexible business organization of one or more proprietors that offers the advantages of indebtedness protection with the simplicity of a partnership, i. e. partners are not li able for business debts (Para. 3).Explain the Advantages of Each Form of Business Organization Sole proprietorships are the easiest to manage due to the temper of the business and it is also easy to close if needed. Partnership businesss benefit by hav ing shared responsibility in managing the organization and raising funds would be easier with multiple partners in the business. In corporations, according to Naol (2011), the shareholders can only be held accountable for their investment in stock of the high society (Para. 6). However when debt raises it can be paid through the sales of stock. or so advantages associated with limited liability companies include creditors can not seize the owners personal property, there is no double taxation, and health indemnity can be deducted from the income tax. Explain the Disadvantages of Each Form of Business Organization Sole proprietorships place the owner at gamble if debts outweigh the profits due to personal property being at risk because of the owner being responsible for all debt and liabilities. This form of business may postulate with the type of employees it draws due to personal funds needed to start the business.If the owner is not available to run the business it is at hig h risk of failing. In a partnership business because each owner is equally accountable for the liabilities each member will be held responsible for whatever negative actions by another partner. Because of diversity members may run into disagreements with the management or expenses of the business. According to Business Finance (2011), The process of incorporation requires more time and money than other forms of organization (Para. 3). Taxes may be high for a corporation, and there are more strict regulations to follow. A corporation may also be sued.Some disadvantages of a limited liability company are that owners are not allowed to have a net profit and they must pay self-employment taxes. Define the Appropriate Form of Ownership for an fast-growing(a) Entrepreneurial Firm According to Pullman (2011), the most appropriate form of self-command for an ravening entrepreneurial firm would be a limited liability business. An entrepreneur who is willing to take risks in the process of being aggressive would be willing to even risk personal wealth and property, which would result to greater success than entrepreneurs who were not as willing to take much(prenominal) risks.Conclusion The main focus behind marketing and healthcare is business growth and financial gain, and the form of business used plays a tiny role in the success or failure of the industry. Through knowledge of the various forms of business and their advantages and disadvantages will lead to the entrepreneur being able to make an informed choice of which business form will dress hat meet their needs to produce a successful venture. References Business Finance. (2011). Types of Business Organizations Corporations. Retrieved November 19, 2011, from http//www. businessfinance. om/books/startabusiness/StartABusinessWorkbook012. htm Naol, M. , A. (2011), Forming a Texas business corporation. Retrieved November 19, 2011, from http//www. nacollawfirmblog. com/business-transactions/forming-a-texas-b usiness-corporation Pullman, J. (2011). How you structure a new entrepreneurial business matters. Retrieved November 19, 2011, from http//www. streetarticles. com/entrepreneurialism/how-you-structure-a-new-entrepreneurial-business-matters SCORE Association. (2003). Common forms of business organization. Retrieved November 19, 2011, from http//www. tulsascore. org/organization. html