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Legal and Financial Decisions for Small Businesses

For each of the following small businesses, describe the best form of business ownership: sole proprietor, partnership, or corporation. The small businesses include the following:

-Retail electronics
-Software developer
Please Justify and explain why it is the best form of ownership for each particular business.
Also please include the advantages and disadvantages of the form of ownership.

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Retail electronics - This one I would choose a corporation. The reason has as much to do with the cost of doing business as the business itself. There are many big electronics stores and the niches are often covered. Anyone who decides to enter the industry will have to move quickly, find and support a niche, and compete in a global market, even in a small town. All of these competitors will make business difficult and making the business its own entity will protect the owners/partners from losses suffered while providing some modicum of protection overall.

Software developer - These could be any. I would prefer sole proprietor if going into business, because the control of all the properties becomes the single owner's property. ...

Solution Summary

The legal and financials decisions for small businesses are examined.