This paper is about an inventor who is trying to start up their own business but does not have the financial stability nor the management skills to keep the business afloat. They also need to decide which type of ownership will best fit their business: Sole Proprietorship, Partnership or Corporation.
Unit 1: Individual Project
Becoming a successful inventor is no easy task. It takes hard work coming up with and designing the product one wishes to sell. Then there are the questions ‘Could this product be successful in a household?’ ‘Would consumers buy this product when there are other products out there that are the same only more dangerous to use?’, but this isn’t even the beginning of the problems one may be facing. How are you supposed to start this new business adventure when one has neither management skills nor the funds to ‘start up’ a business? Then you have to think about what type of business do you want to have and what would be best to get it started? Would a sole proprietorship, partnership or a corporation be best? Deciding which type of business you want to run will probably be the hardest thing you will have to decide on. After all, it will decide whether you own your business on your own, whether you get help and have a partner or whether a corporation comes in to play. There are advantages and disadvantages to each type of business that you do need to consider though. A sole proprietorship is owned and operated by one person (or a married couple that files taxes jointly) (Editorial Board, 2011 P.47) these types of business are very easy to start in terms of the legalities, startup costs and taxes. As the sole owner, he/she will have complete control over their business, from the finances to the advertising of their product and business. The downfall to a sole proprietorship is that since you are the only owner, should your business decline and go out of business, you are...