Structure & Different Forms Of Business Ownership (Essay Sample)
If you have given a chance to own a business, which form of business ownership do you like to establish and why? No single form of ownership will give you everything you desire. You’ll have to make some trade-offs. Because each option has both advantages and disadvantages, your job is to decide which one offers the features that are most important to you. Specify your business, its advantages, and disadvantages and support your details with examples (if possible). Your answer must be between 1-3 pages, double spaced, Time New Roman, font 12 sizes.
Provide your resources and citations.
If you’re starting a new business, you have to decide which legal form of ownership is best for you and your business. Do you want to own the business yourself and operate as a sole proprietorship? Or, do you want to share ownership, operating as a partnership or a corporation, private limited companies, cooperatives, Crown corporations? Some of the questions that you’d probably ask yourself in choosing the appropriate legal form for your business.
1) In setting up your business, do you want to minimize the costs of getting started? Do you hope to avoid complex government regulations and reporting requirements?
2) How much control would you like? How much responsibility for running the business are you willing to share? What about sharing the profits?
3) Do you want to avoid special taxes?
4) Do you have all the skills needed to run the business?
5) Are you likely to get along with your co-owners over an extended period of time?
6) Is it important to you that the business survive you?
7) What are your financing needs and how do you plan to finance your company?
8) How much personal exposure to liability are you willing to accept? Do you feel uneasy about accepting personal liability for the actions of fellow owners?
Forms of Business Ownership
Business ownership is an aspiration of most people around the world. Nevertheless, running or owning any business takes a lot of factors into consideration. Comprehensive research on the different forms of business ownership should be done to familiarize with the requirements, merits, and demerits of choice preferred by an individual. The success or failure of any form of business that one chooses to venture not only depends on its profitability, but also on the structural demands for its competitiveness in the market. The structure of a given business entity is one of the primary factors that a business owner should take into consideration, and extensive consultation ensures sufficient knowledge and understanding of the preferred form of ownership. Some of the fundamental elements to take into account while making a decision include, the size of business, level of control, government regulations, expected profit or loss of the business, and liability one is willing to carry or share.
All factors considered, a sole proprietorship would be the best choice. It is a form of business entity that is owned by one person and thus enjoying more flexibility in regards to management lacking in other structures. It is also easy to start and operate as the owner has the sole responsibility of the daily business activities. Additionally, the
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