Planning for Growth Assignment : Sole Partnership Limited Corporation
Added on 2021-02-20
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PLANNING FOR GROWTH
INTRODUCTIONBusiness venture defined as entity that developed with intent of profiting financially.There are many business entities considered as small business. Therefore, business ventureformed up with plan and expectation that aids to generate profit. In addition to this, venturecapital 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 ventureand will be based on cosmetic venture that will be consisting of skin care and athletic apparelutilizing multichannel of distribution. TASK 1 Description on various type of business organisation and analysis of potential benefits, limitationand risk.Business organisation defined as how entities need to structure how structure aids to meettheir goals. Henceforth, entities are designed to focus on generating profitability or to improvesociety (Brinckmann and et.al 2019). Additionally, businesses are started by individual to earnincome and generate profits. It offers the legal framework in which it is described aboutstructure, profit sharing and liability Henceforth, types of business structure are defined infollowing manner are as- Basis SoleproprietorshipPartnershipLimited liabilitycompanyCorporationMeaningIt is commonbusinessstructure. Theseentities are ownedby one person andindividually theywork as toperform dailybusinessresponsibility forIn this, two ormore individualsshare ownershipof singlebusinesses. Underthis, partners ofthe entity musthave legalagreementbetween them thatThis is defined asa separate legalentity. Therefore,it comes underthe private firmsin which ownerare legallyresponsible fordebts only to theextent of amountThis isconsidered as tobe unique,separate and apartfrom those whoowns it. Underthis, shareholderelect BOD tooverlook policesand decision1
running firm.Hence, soleproprietor ownsthe whole controland within theparameters oflaw. Theseindividuals haveunlimited liabilityand are legallyresponsible for alldebts against thebusiness. It iscommon businessstructure. shows howdecision taken.Furthermore, eachpartner can helpwith financing,start up cost andongoing businessexpenditure.Additionally,each individual isliable for debtsand obligations. of capital theyhave invested. Itis commonbusinessstructure. (Fernando,Jabbour andWah, 2019).Henceforth,corporation donot dissolve evenif ownership istransferred. It isan entity that canraise fundsthrough IPO. Inaddition to it,corporation aremonitored andregulated by state,national or localgovernment. It iscommon businessstructure. BenefitHenceforth, oneof beneficialaspect is that thisis easy to formand owner canenjoy the solecontrol ofbusiness profits. In this businesspartners does notget taxedseparately. Thus,it is very easy toestablish. It providesmembers theprotection fromliability. This provideslimited liabilityprotection to itsowners. Risk It poses the riskof personalliability. Hence,there is no legalseparationbetween theThere is presenceof risk in terms todisagreementsand frictionamong thepartners andCreditors do notexactly offset bythe lower returnpaid toshareholders. The financialuncertainty facedby investor whoholds securities inspecific firm. 2
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