Question
Directions: This lesson has discussed the cost and benefits of three different types of business organizations: sole proprietor, partnership and corporation. Following is a list
Directions: This lesson has discussed the cost and benefits of three different types of business organizations: sole proprietor, partnership and corporation. Following is a list of key factors that a new owner(s) needs to consider when deciding what type of business organization is best for his or her situation:
- Their level of expertise starting and managing a business
- Their willingness to share decisions and profits with others
- The level of liability they are willing to accept
- The tax implications related to future income or profits from the business
- How long they want to stay involved in the business as either managers or investors
- How concerned they are about what will happen to the business if they decide to leave
FOR EACH OF THE LETTERED POINTS ABOVE:
Decide whether each factor listed is a cost or benefit in each particular type of business organization (listed below). Give a brief explanation for your answer.
Sole Proprietor:
Partnership:
Corporation:
https://www.econedlink.org/resources/three-types-of-business-organizations/
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