Question

In: Accounting

Analyze a start-up company you create. Include in your analysis the type of company you have...

Analyze a start-up company you create. Include in your analysis the type of company you have created, its business objectives, and other factors that you believe are important to the success of the business. 

Solutions

Expert Solution

This is a start-up business or company. The name of it is “ABC Associates”; it deals with purchasing and selling of stationery products, a retailing house.    

Type: The type is sole-proprietorship.

Since this is in start-up stage, the business would be small. Therefore, the sole-proprietorship type is the best suited. This is the single-ownership business, where the capital requirements and financing are low. The owner himself/herself can run the business smoothly; but if necessary he/she can appoint few staffs.

Success: The business success depends on few simple things: (1) objective of the business should be simple. In this case ABC has the objective of having a steady growth and profits in future. (2) Input price: Suppose pen, paper, ink, etc are purchased from wholesaler to sell to consumers; these are inputs of the business; the owner has to purchase these goods in bulk on time when prices are low, because at lower input price higher would be the profits margin.    


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