What options does a group of people have when forming a business? Why might a partnership not be the best form of business organization? What other options might they have?
Options does a group of people have when forming a bussiness :-
1. Partnership
2. Body corporates like company, limited liability corporations
Why the partnership not be the best form of bussiness organisation :-
1. If partnership is not registered with regulating authority then that partnership form does not have enforceability before the law. Example :- that partnership cannot sue you any other person in case of any breach of contracts.
2. Less regulation compared to all other options of formbof bussiness.
3. No seperate legal entity.
4. Unlimited liability to all the partners
5. as said in the question like group of people means many number of people as numbers increased we need more regulations to regulate those people. in partnership type of organisation there are less regulations compared to other option form of businesses.
The other options might they have :-
As the number of people who actively participate in the organisation increases we need to incorporate more regulations to run the bussiness smoothly and properly.
All these regulations can be found in company form of organisation only. Company form of organisation is better compared to partnership form of bussiness.
1. Limited liability corporation
2. Public corpratation companies
These are all the information required to solve the given question.
I hope, all the above mentioned information and explanations are useful and helpful to you.
Thank you.
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