Do you agree with this analysis why or why not ?

Small businesses have the opportunity to change its legal form throughout its life span with many factors that can contribute to such changes such as prestige. While there are eleven questions listed in the text that should be asked in order to determine the value, and form of small businesses, I will focus on the three that I feel are the most important.

Under what legal form of organization is the firm now operating?

I chose this question specifically because how you start your company may not be how you finish. In my personal opinion, your vision may start out as one thing, be it a brand, or some sort of product that is fashionable. Take clothing for example. The graphics that are printed on shirts have meanings. Those meanings may snowball into something that is far greater than the original concept. Nike is famous for this, as the term "NIKE" means goddess of victory, hence the primary market being sports.

What are the major risks to which the firm is subjected?

My company is currently a Limited Liability Company (LLC) which combines the advantages of a corporation, such as liability protection, with the benefits of a partnership, which could include tax advantages. What does that mean? Owners and investors must report profits and losses on personal tax returns as if they were partnerships, but like corporations, limited liability is provided for members, even those who participate in management. Yet when it comes to federal tax returns, LLC's can be taxed as if they were sole proprietorships, partnerships, or corporations. What your LLC files as determines the tax forms used to file. An entrepreneur must decide what their firm would be based on the advantages of the company, however disadvantages include higher expenses during taxation based on state laws, as they may not include recent tax changes.

Have you considered the management advantages of alternative legal forms?

This question holds a lot of weight for me personally. Getting into business is tough, especially when you don't know exactly what it is that you want to do. Before you start any type of business venture, it's best that all the facts are understood, and studied.

Define proprietorship, partnership, corporation, limited liability company, cooperative and joint venture. Why is it important to know this information?

A proprietorship is a business that is owned by one person. This means they are solely responsible for everything from the product, to revenue and losses.

A partnership is basically a pact between two people or a group of people that move as a unit (co-ownership) in a for profit business. All parties involved have unlimited liability for debts and obligations (Byrd, 57). There are several different varieties of partnerships that are also listed in the text.

A cooperative is a business composed of independent producers, wholesalers, retailers, or consumers that acts collectively to buy or sell for its clients (Byrd, 64). An example of such is your local grocery store. Profits are returned to the all parties involved at the end of each year which results in no profit or taxes.

A joint venture is a form of temporary partnership whereby two or more firms join in a single endeavor to make a profit (Byrd, 65). Typically firms that embark on joint veneers use other major firms in order to generate revenue, or for lack of a better word, get their brand, or product out there.

Reference: Byrd, M. J. (2018). Small business management: An Entrepreneur's guidebook. McGraw-Hill Education.