Swimming Pool Repair: Disadvantages: It Can Be Difficult To Manage Financial Resources

Name_satnam __kaur_____
Date___13 jan 2022
CRITICAL THINKING EXERCISE6-2
CHOOSING A FORM OF BUSINESS
The needs of the businessperson starting a new business are a major 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 proprietorship, partnership, or corporation. Look at the list of
new businesses below. Indicate the form of ownership you think would be best for each business. Give
the reason for your selection.
Swimming pool repair Sole Proprietorship
Swimming pool repair is the small business and one person can easily run and it does not require much
management and investment. Advantages: there will be less regulation as it is small seasonal business
Disadvantages: it can be difficult to manage financial resources
Flower shop Sole Proprietorship It require less cost and it is easy to starting
Disadvantages: ;loss will tackle by owner only as there will be not any financial support
Internet-based specialty store Sole Proprietorship
The start-up costs to begin an internet-based specialty store would not be too expensive with the
exception of the supplies needed for the initial orders. This type of business could be operated at home
and the need for a physical location would not be necessary. It would be beneficial to begin as a sole
proprietor since there aren’t too many up front expenses to begin this type of business.
Termite control service Corporation
To begin a termite control service, there would be many initial costs associated with opening this type of
business. First, there would be needed finances for vehicles, specialized equipment, chemicals, supplies,
licenses, and inspections to open a termite control service. Then there would be additional expenses for
legal fees to assist with specialized contracts with other to start it as a corporation due to the necessary
costs associated to begin this specialized service type business. With a corporation, there may be more
financing options available and other resources to obtain the initial capital needed to start the business.
If legal issues should arise, the liability would not be on one individual or owner. If the business fails, the
loss would not be as great since the liability is not on one owner or individual. businesses or companies
to negotiate the service being provided. Beginning a termite control service business would be beneficia
Textbook publishing company Corporation :There would be much needed costs associated with
starting a textbook publishing company. There would also be a need for employees with specialized
skills, which would require paying them competitive salaries. Starting this type of business as a
corporation would have many advantages such as the availability of capital, resources, financing, and
varied skills and knowledge.
Law firm
Sole proprietorship There would not be many initial costs in starting a law firm. This type of business
could start out in a home office or an actual leased office. All the profits would belong to the owner.
There would be few initial costs for lease or rent of an office, supplies, business license, and
advertisement. As the law firm becomes more profitable, employees or an actual physical location may
be necessary. It would be very feasible to start a law firm as a sole proprietorship
Clothing manufacturer Corporation – To start a business as an cloth manufacturer, it would be in

the best interest to begin as a corporation due to the advantages of the resources and potential
financing for the initial capital. There could possibly be much needed capital for the equipment,
supplies, facilities, employees, inspections, and licenses just to start this type of business. Starting a
business as a sole proprietorship or partnership in this type of industry would be a huge disadvantage
due to the much needed initial investment.

Swimming Pool Repair: Disadvantages: It Can Be Difficult To Manage Financial Resources

Uploaded by

Copyright:

Available Formats

Swimming Pool Repair: Disadvantages: It Can Be Difficult To Manage Financial Resources

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Swimming Pool Repair: Disadvantages: It Can Be Difficult To Manage Financial Resources

Uploaded by

Copyright:

Available Formats

Name_satnam kaur___

Date___13 jan 2022

CRITICAL THINKING EXERCISE6-2

CHOOSING A FORM OF BUSINESS

Swimming pool repair Sole Proprietorship

Internet-based specialty store Sole Proprietorship

Termite control service Corporation

Clothing manufacturer Corporation – To start a business as an cloth manufacturer, it would be in

You might also like