Selecting a Form of Business Ownership

 As we continue our studies, I look forward to what is there to add to the meaning of business and the impacts there are in our lives, economy, and everyday matters. These questions are great for understanding how I want to move forward to run or start a business and the type of legal form. 

1. What are you willing to do to set up and operate your business? 5
2. How much control do you want? 4
3. Do you want to share profits with others? 3
4. Do you want to avoid special taxes on your business? 4
5. Do you have all the skills needed to run the business? 5
6. Should it be possible for the business to continue without you? 2
7. What are your financing needs? 5
8. How much liability exposure are you willing to accept? 3

• Review the eight questions identified in section 4.1 of the text that you’d probably ask yourself in choosing the appropriate legal form. Rate each of the questions using this scale: [1] not at all important; [2] not very important; [3] somewhat important; [4] very important; [5] extremely important. Select the two questions that are most important to you and the two questions that are least important to you, and explain your responses to these four questions.

What are you willing to do to set up and operate your business?

I would prefer to have a plan prior to starting and moving forward in starting a business. I would hope that I can have funding, and a business plan so that I can press forward with certainty. 

Do you have all the skills needed to run the business?

I need to have the necessary skills to be able to cope with the challenges that may come up while running a business and be able to survive longevity and hardships. 

Should it be possible for the business to continue without you?

I would like to retire within a certain time and at an age that I can relax and enjoy the rest of my life leaving the business in someone's capable hands. 

How much liability exposure are you willing to accept?

This question should be addressed as a company runs its business and creates the type of business format in which the company can legally form and create opportunities for expansion.

• Why do you think sole proprietorship's account for such a huge portion of US businesses given the many disadvantages compared other forms of business ownership? Explain your reasoning.

The disadvantages outweigh the advantages mainly because of the risks it takes to start and supply a company with adequate knowledge and understanding - financially. The other forms of business include less liability and special abilities to walk away with debt or disaster.