Discuss the principal factors influencing a business manager's choice of organizational form

What will be an ideal response?


There is no ideal form for a business venture. Each of the forms has its advantages and disadvantages. The entrepreneur, with the counsel of an attorney and an accountant or a tax expert, should carefully weigh the advantages and disadvantages of different organizational forms of the type of business the entrepreneur wishes to engage in. The principal factors influencing a business manager's choice of organizational form are: a) tax ramifications; b) control considerations; c) potential liability of the owner(s); d) ease and expense of formation and operations; e) transferability of ownership interests; and f) projected life of the organization.

Business

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