Question

In: Finance

what does a mission statement do? what is the most common use of a business plan?...

what does a mission statement do?

what is the most common use of a business plan?

identify and define three types of business ownership.

Solutions

Expert Solution

From a business perspective a mission statement states the overall purpose of the organization's existence.It encompasses the goals,agenda ,culture etc of the organization.The mission statement o an organization will describe what it is that the organization is performing, how and why it's doing it.Missions statements are often short it maybe a sentence or a paragraph.

Business plan refers to a document pertaining to the organization that details the goals of the organization and the ways in which the organization strives to achieve them.It is often used in case of startups during pitch meetings to secure funding for the startup.Over the course of the organization the business plan will be subject to frequent review and updates to ensure the goals set are being met.

The three types of business ownership are sole proprietorship,partnership and a corporation.A sole proprietorship refers to an organization with one owner.The owner is not subject to double taxation.In the case of sole proprietorship the owner bears liabilities of the business and benefits form ts profit.A partnership refers to a business formed on the basis of a formal agreement between two or more individuals.In a partnership the liability of the owners will vary depending upon the type of the partnership.In a general partnership the owners will have equal liability and in a limited partnership the liability of owners will be limited.A corporation refers to an organization(entity) that is formed by shareholders or individuals, and has a separate legal existence from it's owners.A corporation is subject to double taxation(taxed on it's profits and dividends)The owners of the corporation(shareholders) are not liable for the debts of the corporation.


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