Planning for Growth

PLANNING FOR GROWTH

INTRODUCTION
Business venture defined as entity that developed with intent of profiting financially.
There are many business entities considered as small business. Therefore, business venture
formed up with plan and expectation that aids to generate profit. In addition to this, venture
capital defined as financial plan that support in starting a business and its long term growth.
This assignment reflects the business activities of planning for a new business venture
and will be based on cosmetic venture that will be consisting of skin care and athletic apparel
utilizing multichannel of distribution.
TASK 1
Description on various type of business organisation and analysis of potential benefits, limitation
and risk.
Business organisation defined as how entities need to structure how structure aids to meet
their goals. Henceforth, entities are designed to focus on generating profitability or to improve
society (Brinckmann and et.al 2019). Additionally, businesses are started by individual to earn
income and generate profits. It offers the legal framework in which it is described about
structure, profit sharing and liability Henceforth, types of business structure are defined in
following manner are as-
Basis Sole
proprietorship
Partnership Limited liability
company
Corporation
Meaning It is common
business
structure. These
entities are owned
by one person and
individually they
work as to
perform daily
business
In this, two or
more individuals
share ownership
of single
businesses. Under
this, partners of
the entity must
have legal
agreement
This is defined as
a separate legal
entity. Therefore,
it comes under
the private firms
in which owner
are legally
responsible for
debts only to the
This is
considered as to
be unique,
separate and apart
from those who
owns it. Under
this, shareholder
elect BOD to
overlook polices
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responsibility for
running firm.
Hence, sole
proprietor owns
the whole control
and within the
parameters of
law. These
individuals have
unlimited liability
and are legally
responsible for all
debts against the
business. It is
common business
structure.
between them that
shows how
decision taken.
Furthermore, each
partner can help
with financing,
start up cost and
ongoing business
expenditure.
Additionally,
each individual is
liable for debts
and obligations.
extent of amount
of capital they
have invested. It
is common
business
structure.
and decision
(Fernando,
Jabbour and
Wah, 2019).
Henceforth,
corporation do
not dissolve even
if ownership is
transferred. It is
an entity that can
raise funds
through IPO. In
addition to it,
corporation are
monitored and
regulated by state,
national or local
government. It is
common business
structure.
Benefit Henceforth, one
of beneficial
aspect is that this
is easy to form
and owner can
enjoy the sole
control of
business profits.
In this business
partners does not
get taxed
separately. Thus,
it is very easy to
establish.
It provides
members the
protection from
liability.
This provides
limited liability
protection to its
owners.
Risk It poses the risk
of personal
liability. Hence,
there is no legal
There is presence
of risk in terms to
disagreements
and friction
Creditors do not
exactly offset by
the lower return
paid to
The financial
uncertainty faced
by investor who
holds securities in
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