Running head: BUSINESS ORGANIZATION
Starting up a business requires the business owner to be diligent in the process to protect
the interests of the company. Business planning is necessary to ensure that all areas concerning
the business are covered to have a successful beginning of the business which sets the pace for
the longevity of the business (Tulsian, Tulsian & Pandey, 2008). Things do not always go as
planned because of both internal and external factors but a successful business must learn how to
adapt in changing circumstances. Building up a brand is the ideal way to start a business and this
is the part where Gemma and James are struggling with as they build up their business. They
have an idea that they intend to market to the world but they need to protect their business model
until they have acquired the necessary documents to protect their business.
To protect their business entity, Gemma and James need to decide on the business
organization for their company. There are several types of business organizations that the two
partners my choose from; Partnership, Corporation, Cooperative, Limited Liability Company
(LLC), among others (Fontana& Trakin, 2010).
Gemma and Janes are two people who've consolidated their savings to start a single
business. A partnership is, basically, a single business that is owned by two or more people. The
partners have to contribute to every aspect of the business which includes capital, property, skill
or labor. Each partner also shares the profits as well as the losses of the business. Since a
partnership is the coming together of more than one individual, the decision-making process
becomes complex. Therefore, proper discussions before the start of the business are necessary to
set things in order and develop legality to the process and create a legal agreement of
partnership. A partnership agreement is not required by law but it is encouraged to set the pace of
the business and settle issues later as the business grows (Fontana& Trakin, 2010). It is easy to
start this type of business but there is no separation of assets between the owner of the business
and the business itself. It also opens the business owner to unlimited liabilities.
Limited Liability Company (LLC)
Gemma and James may decide to set their business as an LLC which offers the owner of
the business the features of liability that a corpora...
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