Factors should an entrepreneur consider before choosing a form of ownership

What factors should an entrepreneur consider before choosing a form of ownership?
Identify some laws that might need to be taken into consideration when considering a business structure.

 

Sample Solution

One of the first and most important decisions a business owner makes is selecting the organizational form under which he or she will operate. Some common organizational types are: sole proprietorship, general partnership, franchise, C Corporation, S Corporation, LLP, and LLC. Each form of ownership has advantages, disadvantages, risks, and rewards that can affect the business` chances for long-term success. The following are some of the important factors business owners should consider when selecting a form of ownership: cost of start-up – every business owner must decide how long he/she wants to wait before getting the business up and running and also how much of his/her own money to invest; control vs. responsibility; profits – to share or not to share; taxation; risk tolerance; and entrepreneurial ability.

n fundamental job inside both Fiedler’s Contingency Theory and Chelladurai’s Multi-layered model especially in regards to pioneer part relations, assuming the gathering are natural and trusting of the pioneer strategy execution turns out to be a lot more straightforward. Also to initiative, understanding and adjusting to the circumstance is critical to a pioneer having the option to execute strategies that guarantee a gathering function collectively. Collaboration is a result of good administration, and is again the obligation of the pioneer to guarantee the gathering are working effectively together. Profoundly working groups are fundamental inside associations to build efficiency and part fulfillment, by using the gifts of all gathering individuals actually inside the requirements of the assignment, individual connections and the gathering objectives (Pettinger, 2007). Figure 2: Tuckman’s Model of Group Development (Agile Scrum Guide, 2019) Tuckman in his Model of Group Development gives effectively recognizable stages that a gatherings execution can be estimated against, making it valuable for checking execution, Figure 2 shows Tuckman’s model. Positioning gathering execution against this scale can furnish pioneers with an unmistakable comprehension of how the gathering are working, permitting them to carry out strategies to change this assuming that exhibition is unsuitable (Pettinger, 2007). Inside associations, the hypothesis can be approximately applied to making groups by gathering comfortable people with the point that they will arrive at the norming and performing phase of the model faster. For short and straightforward errands this is an incredibly viable approach to getting sorted out gatherings, because of the expanded momentary efficiency. Anyway there are critical issues with gathering people as such, especially when undertakings become more intricate, and at last the model ought to essentially be utilized for observing the advancement of gatherings (Pettinger, 2007). Figure 3: Belbin’s Team Roles (PrePearl Training Development, 2019) A more practical methodology of collection people is to use Belbin’s Team Theory (Belbin, 2017). Belbin distinguishes 9 key jobs that should be satisfied inside a gathering to guarantee a good outcome, the jobs are summed up in Figure 3. The jobs cover a wide range of abilities that should be available inside a gathering to guarantee a good outcome, and becomes fundamental when undertakings are extended and complex. Associations can track down the Belbin jobs every individual fits through a poll, and accordingly adjusted gatherings can be framed covering all th

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