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The Form of Business of Our Choice

In: Business and Management

Submitted By MGOWOLE
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THE FORM OF BUSINESS OF OUR CHOICE

There are different forms of business ownership which are Sole proprietorship, Partnership and Corporation or Company.

We need to start an Audit Firm and we have decided to call it Group five Audit Firm. And Partnership is the form of business we have chosen.

Partnership is the relationship among persons who operate a business together with a view to sharing profits on a mutually agreed basis.

The following determined our choice of the form of business unit.

Nature of the business activity; this is an important factor having a direct bearing on the choice of a form of ownership. In small trading businesses, profession, and personal services trades, partnership is predominant.

Scale of operation; the second factor that affects the form of ownership of a business is scale of operation. Since the scale of operation of our Audit firm is modest neither too small nor too large, partnership is preferable.

Capital requirements are closely related to the type of business and scale of operation. Partnership can often raise funds with greater ease, since the resources and credit of all partners are available.

Degree of control and management that we desire to have over business, affected the choice of ownership of our business. In partnership management and control of the business is jointly shared by partners even then, they are legally accountable to each other.

Degree of risk and liability; the size of risk and the willingness of owners to bear it is an important consideration in the selection of a legal form of ownership of organization. The amount of risk involved in the business depends, among others, on the nature and size of the business. To make every member serious and kin in business we chose partnership since it has unlimited liability if creditors force payments could even take...

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