Question

1. Discuss the issues that entrepreneurs should consider when evaluating different forms of ownership
2. Describe the features of the alternative forms of ownership, such as the S corporation, the limited liability company, the joint venture, and the syndicate.
3. Describe a typical franchise contract and its primary provisions.
4. Explain current trends shaping franchising.
5. Describe the potential of franchising a business as a growth strategy.
6. Understand the advantages and disadvantages of buying an existing business.
7. Define the steps involved in the right way to buy a business.
8. Describe the various methods used in the valuation of a business

Answer 1

1) The issues that an entrepreneur should consider are:

• Legal liability = The type of ownership will determine the extent of liability. It is crucial during bankruptcy of a company
• Tax laws = As the tax structure is different basis ownership type, it is critical to be considered
• Expenses = Like Partnerships and sole proprietorship are less expensive and easy to form than others. So, it must be taken into consideration
• Future capital requirement for the firm as basis the type of ownership, the capital limit may vary
• Scale of operation is critical for type of ownership in scalability