Ownership of business structure.

 

Discuss some of the strengths and weaknesses (advantages and disadvantages) of each form of ownership or business structure.

 

Sample Solution

A fundamental question an entrepreneur must answer when starting a business is what kind of ownership structure the business will have. There are three basic forms of business ownership: sole proprietorship, partnership and corporation. Each of these forms of business organization has advantages and disadvantages in such areas as setting up the company, paying taxes an assessing liability for business debts. A sole proprietorship is a business owned by a single individual or, in some cases, a married couple. The chief advantage of the “sole prop” is simplicity. There is no paperwork to set one because you quite literally are the business. Also, there is no legal separation between you and the company. That lack of separation is also the chief disadvantage of a sole proprietorship.

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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