In every small business, there are various forms of ownership. The best form of business ownership wholly depends on an individual capability, expectations, skills, and knowledge. A sole proprietorship is business ownership run by one person who is the owners (Stockder, 2010). He is the manager who undertakes all the daily operation of the business. Retail clothing may fit perfectly in a sole proprietorship provided one has the required skills. This is because the cost of startup is less compared to others, and the owner enjoys all the profit alone. It has a disadvantage of unlimited personal liability and the owner bears all the loss alone (Stockder, 2009).
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A partnership is business ownership of two or more people who come together to do business (Stockder, 2010). Accessories Retail electronics require more technical knowledge and skills which one individual may not posses. Getting and working with those with the required skills may require collaborating as one of the best options. The best thing in this form of business ownership is that there is unlimited liability for losses incurred in the business and losses are shared. The main disadvantage is that all the profits of the business are shared among the partners (Stockder, 2009).
A real estate broker would be more comfortable with the cooperation as his form of business ownership. The risk involved in running this sort of business and the liabilities of a real estate brokerage makes cooperation the best and favorable form. Cooperation is a business that involves working together in harmony in a joint action for a common goal (Stockder, 2010). A real estate broker will find this form of ownership favorable because of its limited liability. This means that a person can only loss what he invest and nothing more than that. Therefore, it is best since it provides protection over personal liability, with the shields of personal assets against business liabilities and claims is the best thing. Its disadvantages are its numerous federal rules, states regulation, and its legal formality (Stockder, 2009).
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