Question & Answer: F you were starting a business, which form of business organization would you choose – sole…..

F you were starting a business, which form of business organization would you choose – sole proprietorship, partnership (which type) and why? Discuss the pros and cons of your options. If you already run a business, how is it set up, and how did you choose this form?

Expert Answer

So, Sole proprietorship, Partnership or Corportion, the type of business ownership is totally dependent on the following factors:

Profit assurance :if High, Sole proprietorship
Risk involved: if High, Corporation
Availability of resources at disposal : If Low , Parnetship

But there are several other factors which define the type like

Business knowledge
Experience in industry
Taxation
Loan and investment options etc
Exit clauses
Industry and country of operation

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