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Describe three types of business entities, and describe at least three stakeholders for each one.
What are the stakeholders
Solution
3 different types of business entities are as follows:
Stakeholders are people, organizations or groups having interests in a company's success.
Sole Prprietorship:
Main Stakeholder in a sole proprietorship is/are the owner/s. The other stakeholders are
Customers and Employees.
Partnership:
Key stakeholders in a partnership are the Owner-Partner/s, Other-Partner/s and Shareholders-if
the company has sold its equity to raise funds.
Cororations:
Important stakeholders are Management, Unions and Consumers.
Stakeholders Interests:
All stakeholders interest in the business is to gain profit; both as an entity as well as individual.
Conflict can arise when personal profit of different groups are not alligned to each other. In a
Soleproprietorship, this can be between owner and the employee, as the owner might want to
recover his/her investment as fast as possible without sharing a good amount with his/her
employees. In Partmnership, this tussle can between the partners or between partners and
employees. Similar is the situation in corporations too, as Management often gets involved in
conflict with Labor unions.

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Describe three types of business entities, and describe at least thr.pdf

  • 1. Describe three types of business entities, and describe at least three stakeholders for each one. What are the stakeholders Solution 3 different types of business entities are as follows: Stakeholders are people, organizations or groups having interests in a company's success. Sole Prprietorship: Main Stakeholder in a sole proprietorship is/are the owner/s. The other stakeholders are Customers and Employees. Partnership: Key stakeholders in a partnership are the Owner-Partner/s, Other-Partner/s and Shareholders-if the company has sold its equity to raise funds. Cororations: Important stakeholders are Management, Unions and Consumers. Stakeholders Interests: All stakeholders interest in the business is to gain profit; both as an entity as well as individual. Conflict can arise when personal profit of different groups are not alligned to each other. In a Soleproprietorship, this can be between owner and the employee, as the owner might want to recover his/her investment as fast as possible without sharing a good amount with his/her employees. In Partmnership, this tussle can between the partners or between partners and employees. Similar is the situation in corporations too, as Management often gets involved in conflict with Labor unions.