Business Formation Article Review
Essay Preview: Business Formation Article Review
Report this essay
ARTICLE REVIEW
UNIVERSITY OF PHOENIX
DATE:
November 19, 2007
TO: Garth Ferrell
FROM: ***** *****
RE: Business Formation
Aggarwal, Mansi. (2006, February 06). Business Formation. EzineArticles. Retrieved November 19, 2007, from
ARTICLE SYNOPSIS
The article reviewed in this paper describes the various benefits and disadvantages of sole proprietorships, forms of partnerships and forms of corporations. A sole proprietorship is an entity where one person owns the business, having all profits for his or herself but has sole responsibility for losses and legal and tax issues. A partnership is the structure involving two or more people owning the business, sharing the responsibilities and profits, but having a greater chance of failure due to disputes among the owners. A corporation is when the entity is owned by a group of owners or stockholders who are unaffected by profits or losses and enjoy tax advantages, but lose autonomy and dont have much say in decisions. Once the structure of the business entity is decided upon, there are still many decisions to make before opening the doors to consumers. These decisions include operations, goals and aims, business targets, the means available to achieve those targets, location and finances.
LEGAL ISSUE
A massive amount of planning and management are needed to start a successful business. The business entity structure is the first decision to be made before opening the doors. There are benefits and disadvantages to all forms, and this must be researched thoroughly before taking the next