Question

• In assessing your Business Structure Chart, if you had a sole proprietorship company and wanted to take it global, what structure would be best and explain why you chose that structure.
• Which business structure has the least amount of risk involved and explain your reasoning as to why it has the least amount of risk.
• need in essay form and at least 200 words

Answer 1

Expansion of bussiness globally is very comfortable and very safe to make in the form of private or public limited company.

Explanation for choosing company form of structure :-

1. Limited liability

2. Seperate legal entity.

3. Self employment to not only to owner but also family members.

4. Easy to clear foreign market barriers

5. Taxation benefits

6. Every transaction entered will have a valid proof and evidences

7. Easy to transfer the shares or ownership of the organisation.

8. A company form of organisation can trade in any market with minimum range of approvals and permissions

9. Ease of getting loans and finance from banks and financial institutions.

10. Mobility of resources are very high and reliability by supplier on company is very high.

Reasons for minimum risk to company form of organisation.

1. It has limited liability. There is no risk of unlimited liability.

2. High reliability by the public and private sources of finance.

3. Companies get financial subsidies and incentive from government.

4. Many rules and regulations are applicable to company. Then if company satisfies all the compliances then public will rely on the organisation.

5. Documentation for every transaction done by company.

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.