Legal and financial Decisions
The best form of business ownership for retail electronics is sole proprietorship. Sole proprietorship is the cheapest and simplest way to start a business since it requires no agreements, contract, or other legal documents. It is also relatively cheaper to register a sole proprietor business compared to other forms of business ownership. Sole proprietors are also not required to furnish annual returns and other legal documents that are required periodically unlike other forms of business ownership. This form of business would therefore be appropriate for retail electronics since most retail businesses require low startup capital and generally have low profit margins. Retail businesses require direct control by owner to solve day-to-day operational problems which is only possible in a sole proprietorship form of business ownership. The limitation of sole proprietorships is that they have unlimited liability and they are terminated by death or bankruptcy of the owner.
The best form of business ownership for a software developer is a partnership. Offering professional services such as software development requires collective effort. It therefore requires individuals with complementary skills in their field of expertise to ensure that the services provided are of high quality. On the other hand, providers of professional services cannot form a corporation to provide professional services since it is prohibited by laws governing formation of corporations. Therefore, the best form of business ownership for a software developer is a partnership. The disadvantage of partnership is that at least one partner has unlimited liability .
The best form of business ownership for an advertizing firm is a corporation. Advertizing business requires a lot of capital since it involves investing in various forms of mass communication technologies, attracting and retaining competent employees through pecuniary and other incentive and aggressive marketing. If it is structured as a corporation it can easily raise funds through issuing stock. Corporations can also borrow more funds than other forms of business ownership since they can borrow on a floating charge .
Kuratko, D. F., & Hodgetts, R. M. (2008). Entrepreneurship: Theory, Process, and Practice (8, illustrated ed.). New York: Cengage Learning.
Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2010). Foundations of Business (2 ed.). New York: Cengage Learning.