Question

Using the same 3-4 business ideas from Week 3, outline which of the three primary forms of organization are appropriate for each. Why? What are the costs and benefits of each form of organization based on your proposed business idea?

My three ideas are:

1) Voice Translator

2) Online Record Label

3) Blackhead Removal

Answer 1

answer-

1- The form of business organization for Voice translator could be Partnership form because this product i think requires heavy investment on manufacturing and requires too much financial support for hiring experts, engineers, marketers to manufacture and market this product.This is why i choose this because in partnership you would be able to get funds and other business support from investors like banking institutions etc.

the benefits of this would be-

Access to finance and other business support.

Limited business liabilities.

Sharing of risks in business with partners.

No taxation or we can say tax benefits.

The cost could be-

sharing of profit among business partners.

High chances of business conflicts among partners.

2-The form for second product could be Partnership as well in which the record label can partnership with music studios. this is because online business can be of low cost as there is no need to be present physically like other business but there are other things are needed like business expertise, management expertise, to run the business.onwer can not do all at their own.

The cost and benefits of this form are the same as above.

3- The form for third product should be sole ownership because it is low investment business and take over the niche market with less funds as well does not require too much investment like above products. so all the investment problems can be handled by sole owner.

The benefits of this form-

Full control over the business.

Full profit to himeself.

Tax benefits in this form.

Act like boss.

the cost of this form-

Unlimited liabilities and paper work.

if risk and loss occur then it is all on the owner.