Starting a business with no funds or management experience can prove to be difficult. Comparing and contrasting, for the sole purpose of deciding which business type would be beneficial to the scenario given three business types were discussed. Sole proprietorship, partnership and corporation were reviewed. The outcome chosen was partnership being as it relates best to the scenario discussed.
The idea of opening a business is not one to take lightly. Being an inventor and spending a lot of time on home projects, the idea to create a new home product that is easier and safer to use is very exciting. Not being sure how to set up and get started on making plans to fund the business venture can be stifling. When it comes to manufacturing this new home product, the ideas that come to mind can make one unsure. However, this product can be adapted as well to benefit a whole range of products as well. In the business environment there are three ways one can start a business. These business types are sole proprietorship, partnership and corporation. Depending on the type of business venture a person may be looking at, it is important to know exactly what each business type is. According to Ebert and Griffin (2011) a sole proprietorship is a business that is owned and operated by one single person who is responsible for all of its debts. Sole proprietorship is appealing because that person has no one to deal with except himself or herself and starting up a business can be very simple. According to Ebert and Griffin (2011) there are low startup costs and the legal setup procedures are very simple. Also there are tax benefits that make sole proprietorship very interesting to consider. The discouraging side of considering a sole proprietorship is unlimited liability. Ebert and Griffin (2011) stated, “A major draw back is unlimited liability: a sole proprietor is personally liable for all debts incurred by the business” (p....
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