Question

This week we discussed and defined the types of business structures along with their advantages and disadvantages. On page 2 of the attached document, there is a Business Structure Chart where you will be filling in the definitions and advantages & disadvantages of each business structure. On the chart under the category of sole proprietary, a partial example has been started to show you how to fill in the chart. After you have completed the chart,you will need to answer the following questions in an essay format on a Word document.Please answer the questions with at least 200words

BUSS100 – Project (Business Structure Chart and Analysis) Completing this assessment will help you meet the following outcome: • Compare the different types of business structures Business Structure Chart (BSC) Fill in the chart below. Sole Proprietorship Partnership Corporation Definitions A business that is owned and usually managed by one person.

Advantages 1. Ease of starting and ending the business 2. 3. 4. 5. 6 Disadvantages 1. Unlimited liability 2. 3. 4. 5. 6. 7. Answer the following questions in an essay format with at least 200 words: • In assessing your Business Structure Chart, if you had a sole proprietorship company and wanted to take it global, what structure would be best and explain why you chose that structure. • Which business structure has the least amount of risk involved and explain your reasoning as to why it has the least amount of risk.

Answer 1

Different Types of Business structure:

1. Sole Proprietor: 2. Partnership. 3.Corporation 4.Service Business

Advantages of sole Proprietor:

• Starting a sole proprietor is easy unlike other business, it requires less paper work
• Owners have direct control over business and they can take all decisions.

Disadvantages of Sole Proprietor:

• Owners are fully liable, if there is any loss they have to bare it completely
• Owners must pay Taxes on Business income.

Advantages of Partnership:

• Contribution among partners for funds
• collection of ideas from Multiple partners

Disadvantages of partnership:

• There is a restriction in number of members
• Partnership firm will be dissolved due to death of partner or insolvency of Partner

Advantages of Corporation:

• Perpetual succession, business will go on forever and ever
• Limited Liability

Disadvantages of Corporation

• Process is expensive and Time consuming
• Management may act in interest of their own rather than management

In my view consulting and tutoring has least amount of risk involved because people might already have suffiicent knowledge in the field which rarely brings us risks