Explain the major factors at play when deciding what form the business organization must take.
What will be an ideal response?
There are six major factors at play in the decision on the form of a business organization to set up:
1. Personal liability of the business owner-how much the owner can lose if there are problems arising from the business.
2. Taxation of both the entity and its owners-do owners get taxed as well as the business?
3. Complexity and organizational costs in setting up the business and maintaining that entity-how difficult and costly is it for the owner to maintain the legal form of the business?
4. Control of the business-who runs the business and how is decision making split among various people?
5. Continuity of the business-how long that particular form of business can continue and under what conditions the business could end.
6. Ability of the business to raise capital-can the business borrow money, issue stock, or issue bonds?
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The basic purpose of informational reports is
A) to persuade the audience to act. B) to present recommendations and conclusions to a superior for how to solve a particular problem. C) to present data, facts, feedback, and other types of information, without analysis or recommendations. D) to convince the reader of the soundness of your thinking. E) to change the audience's opinion on your topic.
Ryan’s organization builds new roads and repairs old ones. Ryan’s organization is involved in the creation of ______ capital.
A. natural B. social C. manufactured D. human
In a(n) _____, two or more firms both put some resources into a new, separate entity.
a. equity joint venture b. subcontract c. licensing arrangement d. consortia
Punctuate the sentence correctly. The house that they bought is more than 200 years old