StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Business Structure Advice - Essay Example

Cite this document
Summary
One should consider capital generation, type of business and willingness to include or exclude partners. Consideration of these factors should provide enough to enable a person to write a…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.3% of users find it useful
Business Structure Advice
Read Text Preview

Extract of sample "Business Structure Advice"

Business Formations affiliation Business Formations The decision to start a business venture should be considerate of numerous factors. One should consider capital generation, type of business and willingness to include or exclude partners. Consideration of these factors should provide enough to enable a person to write a successful business plan. However, the physical processes present a challenge in putting into practice the theory contained in the business plan. Firstly, one has to choose a form of business they would prefer.

There are different types of business formation one may choose from. They include sole proprietorship, partnerships, and Company. Companies are large corporations with a huge composition of members and partners. They have complex legal requirements and not suitable first time ventures. In addition, their creation requires large financial resources and is exposed to numerous business risks (Besley & Brigham, 2008). This makes it a bad business venture for an amateur business creation. Sole proprietorships are less complex corporations.

Their formation requires only the existence of the owner. In this form of business, the owner may receive aid from family members. This form of business is preferred for a first venture if the owner has enough resources or can receive financial aid enough to create a business venture (Besley & Brigham, 2008). In regards to taxation, a sole proprietorship is only taxed on the business venture. A person’s personal properties are not liable for taxation. However, the business venture is mandated to pay an annual tax for its operations (Besley & Brigham, 2008).

Partnerships, on the other hand, are business ventures created with the collaboration of two or more persons. They are referred to as partners. They are easy to create as a person may seek a partnership from a person or persons who share similar business incentives (Besley & Brigham, 2008). The main advantage of this business form is that the capital contribution is shared among partners. In addition, operations are divided among the partners. This makes it easy to operate. In a situation where a person lacks enough capital and business knowledge, a partnership is the most appropriate business venture (Besley & Brigham, 2008).

Taxation in partnerships is only liable on the business. However, the tax to be paid by the business is shared among the partners. In addition, personal properties are not taxed on the behalf of the business. In regards to capital generation, a business may have numerous options to consider. One possible way of capital generation is seeking financial loans from financial institutions. A business may be presented to the financial institution accompanied with collateral. The bank would then consider a loan application and aid may be provided (Besley & Brigham, 2008).

However, the business plan should be logic and practical for one to qualify for a business loan. Another source of capital is through personal contributions. This is appropriate when one had decided to venture into a sole proprietorship. In addition, this form of business can obtain financial resources from family and friends. Personal contributions can also be merged with contributions from partners in a situation when prefers a partnership from of business (Besley& Brigham, 2008). Access to capital is mandatory the towards business creation.

ReferenceBesley, S. & Brigham, E. (2008). Principles of Finance. New York: Cengage Learning.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Business Structure Advice Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Business Structure Advice Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/finance-accounting/1647027-business-structure-advice
(Business Structure Advice Essay Example | Topics and Well Written Essays - 500 Words)
Business Structure Advice Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/finance-accounting/1647027-business-structure-advice.
“Business Structure Advice Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/finance-accounting/1647027-business-structure-advice.
  • Cited: 0 times

CHECK THESE SAMPLES OF Business Structure Advice

The Disclosure of Information for the Evaluation of the Progress of a Firm

rganizations that depend on the advice professionals such as accountants, at times, tend to receive wrong advice on the disclosure conditions and rules to lenders.... For instance, information about the payment structure of employees provided to lenders can encourage labor unions to carry out demonstrations if leaked.... For instance, in a situation where a firm intends to assume a new approach of business, it will not reveal this information until it is verifiable....
3 Pages (750 words) Research Paper

Regulatory and Compliance Issues

Plain English Definition A plain English definition of financial advice is guidance and recommendations from an individual who is qualified and knowledgeable about financial products, estate planning and asset protection.... Financial advice is not only based on knowledge, but also based on due diligence.... In this regard financial advice is given after taken into account investment, savings, debt creation, debt management and so on that is compatible with the client's needs and resources....
3 Pages (750 words) Assignment

Review the theoretical relationship between market structure and bank performance

For instance, there is the advice that company executives (specifically, the chief executive officers) acquaint the government and bank officials.... Such advice is vital for establishing better pricing strategies and focusing on the income within a certain period.... MACRO AND MICRO ECONOMICS: RELATIONSHIP BETWEEN MARKET structure AND BANK PERFORMANCE By Instructor Institution Location Date Introduction Growth of an economy is essential and depends on the tasks undertaken by banks in relation to the market structure....
4 Pages (1000 words) Coursework

Advaced Business Structures

Sole Proprietorship: An unincorporated business owned by an individual which is not treated as a separate legal entity from its owner is called sole proprietorship.... The proprietor and his business are "one" legally.... … Sole Proprietorship: An unincorporated business owned by an individual which is not treated as a separate legal entity from its owner is called sole proprietorship.... The proprietor and his business are "one" legally....
8 Pages (2000 words) Essay

Organizational Structure

o formulate these multi-dimensional functions in a simpler manner, theorists and analysts devised two types of organizational structure, i.... mechanistic and organic structure.... While mechanistic structure follows the rigid form of formalization, centralization, departmentalization and specialization; the later sticks with in-formalization, decentralization and cross - functional teams in the organizational environment.... onceptually, mechanistic structure is considered to be very rigid by norms and beliefs and therefore, is a lot more influencing in a given stable environment of business, comprising of some routine schedules and technologies used in the organization....
7 Pages (1750 words) Research Paper

Being Promoted into a Leadership Position within Organization

This advice is based on the relevant theories in team work, organisational culture and leadership.... This policy focuses on the concept that the interaction and structure of the company are interdependent.... Excluding emotions within the organisation could infringe on creativity among the employees and minimizes the level of conflicts and could be the best approach while dealing with official matters in the business....
6 Pages (1500 words) Essay

Business Consulting Paper

business consultant is a person who is an expert in business fields and offers advice and guidance to firms mostly at a fee.... He or she guides a firm when setting up its organization structure, and also when coming up with the roles and responsibilities in every position.... The areas of expertise include business,… There are two groups of consultancy includes internal and external consultants.... On the other business Consultant A consultant is a person who is an expert in a particular field and offers advices regarding the area of expertise....
2 Pages (500 words) Essay

Contemporary Social Structures and Their Role in Social Life

alhoun (2007, p199) asserts that despite the emergent forms of the families and the variations of the family structure and function from the community to community, the basic functions of the family include: to reproduce society, both biologically, through procreation; and socially through socialization....
5 Pages (1250 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us