DIME VS BEING WITH CAHOOTS: PREFERRED FORM OF BUSINESS

Related Literature

According to Terry Master, a sole proprietor is limited to money he can invest in the

business, loans from family and friends and third-party credit. Partnerships enable you to share

the financing and operational burden. You give up equity in your business, but you gain

additional resources that can help the business expand more quickly. If you need help

establishing the business, operating as a partnership may be the best choice [ CITATION Ternd

\l 1033 ].In this study it can Sole Proprietorship can only obtain funds through their personal

accounts, using their personal credit. This entity does not offer the separation or protection of

personal and professional assets.

Sole proprietorship characterized by the types of business which is the proprietor

provides all the capital required to carry on the business, the proprietor provides the initiative,

controls all the business and retains all the profits arising from the business, and the owner

takes all the risks and bears all the losses sustained in any bad year [ CITATION Eze04 \l

1033 ].This study relates to the present research because capital is one of the major drawbacks

of this form of business. Sole proprietorship has faced responsibility for the business. This study

can help to the researcher that sole proprietor is better than partnership because it has an

initiative and control all the business.

According to Asian Social Science the business started by foreigners as sole

proprietorships more than 10 years ago must achieve a track record before gaining a

commercial registration certificate by government agencies[ CITATION Rat02 \l 1033 ]. A Sole

proprietorship is a small organization whose size makes it difficult to convince customers so the

researcher suggested achieving a track record to make it convincible.

collectively in the firms of Governance. This type of “codetermination” can work very well for

small groups[ CITATION Cam06 \l 1033 ]. In partnership the owners have the same rights and

equal status to participate in work.

Dormant partner, this partner have only contributed money in the company and share in

the profit and loss, but he does not share in the management or the company and also people

do not know that he exist as a partner [ CITATION Davnd \l 1033 ]. Another type of partner

where partner who just invest capital but didn’t do decision making in their business.

In Maryland, 82.7 percent of agricultural operations conduct business as sole

proprietorship. As agriculture continues to evolve, however, producers should consider

investigating all types of business organization structure for their operations to limit liability and

provide additional forms of capital [CITATION Ash15 \l 1033 ]. It relates as a views of owners

who wants to start up a business in a form of sole proprietorship.

There are other several potential dangers to effective partnership: unclear goals,

resource costs, unequal power, cliques usurping power, impact on other ‘mainstream’ or core

school services; philosophical differences between partners and organizational problems

[ CITATION McQ00 \l 1033 ]. This study relates to the business seekers to be more aware of

what form of business they choose.

In case of business debts, the owner is liability personally-unlimited liability. The assets

of the business owner can be taken to pay off business debts since the two are not

distinct[ CITATION dla11 \l 1033 ].This study utter that partnership is an unlimited liability where

the debts of the business cab deduct the asset of the business.

The problem with partnership in working is that there are too many partners. Partnership

working can be defined as a group of individuals, agencies or organizations with a shared

address specific issues and may be short or long term[ CITATION Dew09 \l 1033 ]. Partnership

is related in this study through the owner can think the possible solution of the problems in this

type of business.

Looked at positively, the business partnership model enables you to go into business

with someone else without the perceived formality of a limited company .Form a less positive

perspective, with a partnership in business you’re losing control of the direction of your business

without putting adequate protection in place[ CITATION Jon17 \l 1033 ].This study relates in a

business which the profits are equally distributed and for the capital of the business is not the

problem in this type of business.

Related Studies

Locals

In this study, when the sole proprietor’s business is establish well enough in its home

country in the future and gain enough profit and business experience, the sole proprietor may

then consider changing its strategy to a more complex mode of entry [ CITATION She18 \l 1033

]. As stated, exporting products in other country is quite promising the growing demand does in

fact open new opportunities. However, there are risks involve that should not be Ignored when

running a sole proprietor in the Philippines especially in the liabilities that might be acquired.

The major disadvantage of the sole proprietorship is the unlimited liability of the owner.

Creditors will not only try obtaining the assets of the business but also the personal property of

the owner as payment for debts[ CITATION Dav11 \l 1033 ]. Help to choose wisely for the form

of business in terms of personal assets of owner.

liabilities. He is subject to unlimited liability from many sources: the solo owner is responsible for

his direct acts, for the acts of his would be agents, as well as his acts as a fiduciary for others. In

a broad liability scheme, including vicarious liability doctrine and spreading the risk/deep pocket

rationale, the unincorporated sole proprietor is subject to financial ruin both for his business and

for his personal asset [ CITATION Mit01 \l 1033 ]. In this study it provides information to

business seekers of sole proprietorship is an unlimited liability form of business.

A general partnership is utilized when two or more people want to start a business. In

most respect, the business is divided equally between the owners which include, profit, debts

and management of the business and any losses to the business and any losses to the

business are deducted from personal taxes. Although not required, development of written

agreements concerning the division of the business and how it will be managed removes doubt

and ensure everyone is traveling is the same direction[ CITATION Man79 \l 1033 ]. In this study

sharing profits, risks and losses according to the terms set forth in their partnership contact. If

one of two partners contributes the greater part or the whole of the capital or on the excess

unless there is an express agreement allowing him interest.

The rule of law in this case is the fiduciary duties of partners under the law of limited

partnerships (LP). A limited partnership is a public and formal process that must follow statuary

requirements. The formation of the LP contract must have at least one general partner and one

limited partner along with a signed certificate of limited partnership[ CITATION Cro15 \l 1033 ].

Relates to follow the rules of having a partnership in the business must have at least one

partner in the business who invest capital or who manage the business.

Foreign
 In the research, sole proprietorship e-commerce is increasing because it is an

alternative business. Everyone can be an entrepreneur, so it is a modern trend of business

innovation. At present in Thailand, sole proprietorships have many patterns; sometimes a sole

proprietorship, e-commerce venture does not look like one[ CITATION Per14 \l 1033 ]. In

presiding statement Sole Proprietor is a popular business classification because it is easy to set

up and of low cost for the first investment. It is just required a simple legal process.

The formation of partnerships between firms is becoming an increasingly common way

for firms to find and maintain competitive advantage. While the antecedents of partnership

formation and the characteristics of the resulting cooperative working relationship have been

explored in the literature, an understanding of characteristics associated with partnership

success is lacking. Such an understanding is important in reconciling the prescriptions to form

partnerships with the reality that a majority of such partnerships do not succeed. We

hypothesize that partnership attributes, communication behavior, and conflict resolution

techniques are related to indicators of partnership success (satisfaction and sales volume in the

relationship). The hypotheses are tested with vertical partnerships between manufacturers and

dealers. Results indicate that the primary characteristics of partnership success are: partnership

attributes of commitment, coordination, and trust; communication quality and participation; and

the conflict resolution technique of joint problem solving [ CITATION Cha \l 1033 ].The costs

and risks associated with mismanaging a potentially valuable partnership, insights into the

factors affecting partnership success is quite useful to develop and nurture the partnership

beyond the initial decision to forge such a relationship.

Data collected from 157 IS executives in large Taiwanese organization were used to

test the relationships between the research model constructs. The result indicate that partner

interdependence, coordination and trust influence the perception of B2B e-commerce for

informational, transactional and strategic benefits, whereas partner commitment contributes only
to perceived strategic benefits of B2B e-commerce[ CITATION Hsu05 \l 1033 ]. The results of

this study could help e-business managers or policy-makers to implement B2B e-commerce

effectively in their organization and with trading partners.

This study establishes partnership quality as a key predictor of outsourcing success.

We propose a theoretical framework for outsourcing partnership based on a social, rather than

an economic, perspective. We identify the partnership-related variables from the relevant

literature and clarify the concept of partnership quality by distinguishing between its components

and its determinants. We then examine the impact of partnership quality on outsourcing

success. Hypotheses on partnership quality were tested for 74 outsourcing relationships

between 36 service receivers and 54 service providers. Results indicate that partnership quality

may serve as a key predictor of outsourcing success. Partnership quality was found to be

positively influenced by factors such as participation, communication, information sharing, and

top management support, and negatively affected by age of relationship and mutual

dependency[ CITATION Jae99 \l 1033 ]. The relationship of partners is important in these types

of business which is partnership. They have equal rights in the business so they must have a

good communication.

The aim of this study is to examine the situations of sole proprietorship, e-commerce

entrepreneurs and trends in their e-commerce. This study uses a mixed-method quantitative

and qualitative approach for collecting the data. The study finds that most sole proprietorships in

e-commerce are owned females between 31 and 40 years old who are educated with a

Bachelor’s degree (63.16%) and draw an income of 40,001–50,000 bahts per month

(approximate $1 USD= 33 bahts). Most of these sole proprietorships (66.59%) are located in the

central part of Thailand. These entrepreneurs spend more than eight hours a day on their

businesses and supply their products by themselves. However, most of the problems faced by

these sole proprietorship, e-commerce entrepreneurs involve the cost for investment in the
business and the knowledge that is required in order to be an entrepreneur. Nevertheless, the

trend toward sole proprietorship, e-commerce entrepreneurs in Thailand will increase with the

adaptation of mobile-commerce in Thai society[ CITATION The \l 1033 ]. Sole proprietorship the

types of business which is the proprietor provides all the capital required to carry on the

business. If the company incurs substantial debts or legal issues all the profits are borne by the

owner itself.
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