Question

• Forms of Business Organization
  • Sole Proprietorship
  • Partnership
  • Corporation

If you had the opportunity to start an entirely new Business Organization, which of the three forms of Business Organizations listed above would you choose? Please discuss why you chose the form of Business Organization you selected, the "positives" and "negatives" associated with your choice, and reasons why you did not choose one of the other two forms of Business Organizations.

Write 250 Words

Answer 1

If I'll have to choose a business, I will start with corporation kind of business because it will help me to limit my liabilities which will be Limited in nature and it will provide me with a strategy to grow through external financing and it will also help me to list my shares in the long run, and expand through issuing of shares and issuing of bonds.

Positives of opening a corporation is that there is a lot of financing methods which are available to a corporation and there is limited liability on part of its members as well as, there is an ownership and management difference and there is a perpetual existence element associated with company.

Negatives associated with the corporation is that there would be lack of privacy and there would be lack of business acumen and the business will also be treated as a separate identity.

I did not choose partnership because the number of partners will always be Limited in a partnership and a partnership will not have external financing and the partnership do not have a perpetual existence and the liability of the members are unlimited in nature so I did not choose the partnership and I choose corporation over the partnership.