A business has many advantages and disadvantages. To choose the right one, all of these aspects must be explored beforehand. These aspects must be explored for the business to be successful also. Taking your time to do this will ensure that you are not only making the best decision possible, but that you are making an informed one. Compare and contrast all the aspects of each type of business, then make your choice of which business is best suited to meet those needs.
Sole Proprietorship, Partnership, or a Corporation: Choosing the Best Option
There are three types of businesses according to MUSE 2010. They are defined as Sole Proprietorship, Partnerships, and Corporations. Each type has its own advantages and disadvantages about them. The scenario about to be discussed has some issues that must be taken into consideration before making a choice of which business type would be best suited to meet those issues. An inventor who wishes to start up a business based on his new idea for a new kind of home appliance which will meet everyday consumer needs (taken from the BUSN105: Scenario worksheet). The inventor has the following issues to consider before choosing which type of business to choose. 1. The inventor has no management skills, and very little financial skills. 2. The inventor’s net worth is not very high, and they are not sure if they will be able to fund the start-up. 3. The inventor has no knowledge of manufacturing, other than the fact that it costs a lot to set up the plant. 4. The inventor has a spouse.
All the information above was taken from the BUSN105: Scenario worksheet. All three types of businesses can solve one or more of the inventor’s dilemas in one way or another.
A Sole Proprietorship is the easiest business to start up. The inventor will be his own boss, there are no formalities, the inventor will...