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    Business Ownership: Corporation, Partnership, Sole Proprietr

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    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
    Advertising
    Justify and explain why it is the best form of ownership for each particular business.
    Be sure to include the advantages and disadvantages of the form of ownership in your discussion.

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    Retail electronics would be well served to be set up as a corporation. Unhappy customers might sue a retail electronic firm so this will give protection since a corporation acts as a legal entity. The corporation method would protect shareholder's personal assets, thus giving the owners limited liability. It would also give the company the ability to generate capital for expansion through the sale of stock. The corporation would get corporate tax treatment. A corporation method of ownership might encourage more employees to work for the electronics store and stay employed, since they could enjoy possible ownership through stock options. Corporations have more complex tax reporting and record keeping than other forms of ownership. Also, there may be double taxing in some cases. Corporations are held to ...

    Solution Summary

    This solution describes the best form of business ownership for the following small business and why:
    Retail electronics
    Software developer
    Advertising
    The solution justifies and explains why it is the best form of ownership for each particular business. The solution includes
    the advantages and disadvantages of the form of ownership (sole proprietor, partnership, or corporation). APA references are included.

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