OOSING A FORM OF BUSINESS OWNERSHIP The needs of the businessperson starting a n

Question

OOSING A FORM OF BUSINESS OWNERSHIP The needs of the businessperson starting a new business are a majar consideration when deciding the best form of business ownership. The kind of business being started is also important to consider when deciding to make your new business a sole peroprietorship, partnership, or corporation. Look at the list of new businesses helow. Indicate the fomn of ownership you think would be best for each business. ive the reasn or your Business Form Resson Swimming pool repair Flower shop Internet-based specialty Termite control service Texthook publishing compuny Law firm Underwear manufacturer Child care center

Explanation / Answer

1. Swimming pool repair: Sole proprietorship (as it does not require much management or investment)

2. Flower shop : Sole proprietorship (as it requires skill set of just one persom with no major investment and more people in this business will lead to clash of ideas)

3. Internet based store: Partnership (as it requires advanced knowledge and constant up gradations which cannot be handled by a single person alone)

4. Termite control service: Partnership (little investment with constant upgrades)

5. Textbook publishing company: Corporation (as it needs to be done on a large scale with large investment)

6. Law firm: Partnership (two partners are enough with little investment and shared risk)

7. Underwear manufacture: Partnership ( sharing of investment and risk)

8. Child care center: Sole proprietorship (can be managed alone)

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