Description
Instructions
Five years ago, three entrepreneurs launched a business partnership. They offer both products and services on the ground and online. They have been able to generate over 60 million in revenue within a very short period of time. The business was far more successful than they had anticipated. They have hired you as a certified consultant to recommend an appropriate business structure for their new but highly successful business.
You are to create a PowerPoint presentation with an audio script. In your presentation, you are required to discuss the protections and liabilities, advantages, and disadvantages of each possible business structure covered this week. After doing so, recommend which business structure would be most appropriate for them and their current need. Be specific.
Keep in mind that you are the expert providing advice, and they are the client paying for that advice. Because they are relying on your expertise, be sure that you provide a thorough explanation for your rationale, putting your best foot forward.
Explanation & Answer
View attached explanation and answer. Let me know if you have any questions.
View attached explanation and answer. Let me know if you have any questions.
Business Structure
Name
Institution Affiliation
Course Details
Instructors Name
Due Date
Introduction
• A business structure refers to the legal framework under which a company operates and is
recognized by the government.
• Corporations, partnerships, limited liability companies (LLCs), and sole proprietorships are the most
common types of business entities (Januarita, 2021).
• The choice of corporate structure can have a significant impact on a company's success because it
can affect matters like responsibility, taxes, and management.
• Because some structures are more appealing to investors than others, the structure may also have
an impact on the company's capacity to raise cash.
• Due to the fact that various business forms are governed by various tax laws, it can also have an
impact on the company's tax obligations.
• To ensure compliance with rules and regulations, maximize benefits, and reduce potential
negatives, consulting with an accountant and an attorney is advised when selecting a business
structure.
Sole Proprietorship
In a particular sort of business structure known as a sole proprietorship, a single person is entirely responsible for all facets of the
business and its debt (Na, 2019)
Protections and Liabilities:
•
There is no legal separation between the company and its owner.
The business's owner is liable for every debt and lawsuits brought against it.
Advantages:
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Easy and inexpensive to set up
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Complete control and decision-making authority for the owner
•
Flexibility in management and operation
•
No need to file annual reports or pay corporate taxes
Disadvantages:
•
Personal liability for commercial debts and legal claims is limitless
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Restricted access to finance
•
Inability to get partners or investors
•
The proprietor is also in charge of running the company and handling all wo...
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