Compare and Contrast Two Types of Business Ownership Term Paper

Compare and Contrast Two Types of Business Ownership - Term Paper Example The owner of a sole proprietorship type of business only needs to register his/her name and get a good location, and the business can begin after this process. He is fully liable for all the debts and profits incurred; if a sole proprietor gets into a financial crisis, the creditors can sue the owner of the business, and if this lawsuit is successful, the business owner will pay all the debts. Sole proprietorship has no entity separate from the owner; this means that if the business owner signs a contract, it will only be under his name. Advantages of a sole proprietorship business include the facts that formation of the business is quite inexpensive and easy, carrying very minor formalities since it involves only one person. Employment tax is not charged on sole proprietorship types of businesses and owners exercise a lot of freedom since they may â€Å"freely mix business and personal assets† (Spadaccini, 2007, p.5). However, despite being the easiest type of business to sta rt, sole proprietorship has a number of disadvantages. These include the facts that sole proprietors cannot raise capital by selling interests from the business, business liabilities and other personal liabilities for debts and losses are unlimited, and it is quite impossible for the business to continue, if the owner passes away. Sole proprietorship can either be terminated by contract or if the owner dies. In case the sole proprietor gives up the business, sells it, or passes away, the existence of the business ceases (â€Å"Types of Business Ownership,† n.d.). Spadaccini defines partnership as â€Å"a business organization formed when two or more persons or entities come together to operate a business for profit† (2007, p.5). Partnership can be formed through... This report stresses that the partnership type of business ownership has a number of advantages. This comes from the facts that, just like sole proprietorship, the kind of business is very inexpensive and easy for the partners to start, since they are able to consolidate their resources together. The business involves very minor formalities and does not hold any annual general meetings. Taxation is very fair on partnerships involving small businesses, and the business is free from charges such as minimum taxes that are usually charged on Limited Liability Companies and corporations. The author of the paper talks about partnerships which have a number of disadvantages. These include partner’s subjection to unlimited personal liability, which is very common, except in cases where the partnerships and liabilities are limited. Partnership types of businesses also experience disputes from time to time arising from differences among the different partners and finally â€Å"Individu al partners bear responsibility for the actions of other partners†. There are various similarities and differences between sole proprietorship and partnership types of business ownership. This essay makes a conclusion that sole proprietorship and partnership types of business ownership share a number of similarities. However, the ways in which both businesses are formed and the way they operate are different.

Experiential Marketing Essay Example | Topics and Well Written Essays - 1750 words

Experiential Marketing - Essay Example Based on the two definitions and in relation to the concept of marketing it is correct to state that experience is an opportunity that enables the audience to get firsthand knowledge on the facts associated with a certain event, product, and or service.The integration of experience to marketing practice led to the emergence of experiential marketing, which is described by Addis and Holbrook as â€Å"a form of advertising that focuses on helping consumers experience a brand.† Experiential marketing is different from the traditional forms of advertising since it engages all the critical senses of a targeted consumer with a particular product or service, thereby giving the targeted consumer a firsthand ‘feel’ of the product or service.This present essay seeks to critically review the nature, role, and development of experiential marketing, evaluate its drawbacks, and discuss its potential contribution to theory and practice. Relationship between stimulus and reaction is a process that led to the notion of experience within the field of marketing, which acknowledges the marketing knowledge that consumers or the target audience already have. It is because of the marketing knowledge that consumers have, that it became necessary for marketers to engage their consumers in a manner that is memorable unlike the traditional forms of marketing. Grundey stated that through this memorable experiences, marketers are able to engage the audience from various fronts that include spirituality, socially, mentally, physically, and emotionally. Through this engagement Grundey (2009 p137) stated that marketers are able to create sensual perception among the target audience, which guarantees them reliability on their observations and/or the facts that they have read. Therefore, it can be argued that because of the marketing knowledge that consumers currently have, it has been impossible to build a trustworthy relationship with them because of their rational behavio r and skepticism on adverts that are purely one-side i.e. mainly communicate about the benefits or advantages of a particular product and/ or service (Katona (1953, p 307-318). By providing an experience in order to communicate to the target audience about the benefits/ advantages of a particular product and/ or services, marketers enable the audience to have an independent view that is devoid of any forceful persuasion (Lee and Overby, 2004, 54-67). This result in the audiences building trust on the business organization and its associated products and/ or services, as it was not in a hurry to influence their purchasing decision but rather it focused more on providing a memorable experience to the audience that can be used to make a rational purchasing decision. Affirming the previously mentioned argument, Shmitt (1999, p 23-54) developed a framework that contained key elements of experiential marketing. One of the elements is sense of which Shmitt (1999 p 58) stated that sense, wh ich is offered through experience is important in differentiating a product/ service and consumers will develop a sense of value on the aforementioned product or service. The second element is ‘feel’ of which Shmitt (1999, p 34) stated that a clear and positive feeling on a particular service or product is capable of influencing its consumption. The third element is ‘think’ and Shmitt (1999, p 41) on this element stated that experiential marketing, accord the target audience an opportunity to conduct a critical and logical thinking on a company and its associated products/ services. The fourth element is ‘