Management

Business Strategy

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Organizational structure and Business Model

Why is choosing the appropriate form of business ownership important for a business you want to start?

Appropriate form of business ownerships gives the level of control that one would like to have in any form of business structure. This means that every form of business has its own benefits that have to be enjoyed by the owner of the business. Choice of any form of business ownership does depend on liability, taxes and record-keeping. Future needs will depend on the form of business that one will choose.

The need to access business cash is an important aspect to consider when making a choice on the form of business that one chooses. The size and nature of vision that a business owner can have is an important aspect. The level of business structure is also an important thing to consider when making a decision on the form of business a person chooses. Business liability is another aspect that has to be considered when making choices on the form of business that a person wants to start. The expected profit or loss that will come from any form of business is important. Finally the ability of the owner of the business to be able to reinvest in the business is another factor to consider when choosing a form of business ownership.

What short- and long-term benefits are associated with each form?

1. Benefits of sole proprietorship

a. Tax easiness is one of the short term benefits of the business.

b. There is full control of the business by the owners of the business.

C. setting up and managing the business is simple and inexpensive.

d. It is simple to dissolve the business.

2. Partnership

A. partnership form of business is easy to set up.

B. it is easy to raise funds due to the number of owners that are associated with the business.

c. This form of business ownership does benefit from partners who have paired skills.

3. Corporations

A. Shareholders are held responsible for their...