Albert Wong just graduated from university and is planning to start his own software development company. He is debating whether to set up practice as a sole proprietor or establish a corporate entity and serve as its president.
Required:
a. What advantages are there to operating as a sole proprietorship?
b. What advantages are there to operating as a corporation?
c. Which form of business organization would his customers likely prefer? Why?
d. Which form of business organization would his creditors likely prefer? Why?
e. Which form of business will be most advantageous to Albert Wong if he expects the business to grow rapidly? Why?