Question

Alex, with significant money with him, is considering the possibility of starting a new business in the chemical waste management field. She will be the sole owner, and she has enough funds to finance the operation. The business will have a relatively high degree of risk, and it is expected that the firm will incur losses for the first few years. However, the prospects for growth and positive future income look good, and Jane plans to have the firm pay out all of its income as dividends to her once it is well established. Which of the legal forms of business organization would probably best suit her needs? Rationalize your views.

Answer 1

SOLE PROPRIETORSHIP - I will be advising her to opt for sole proprietorship form of business because sole proprietorship form of business will be providing her with unlimited profits and unlimited liability as well so she will be the sole person who will be taking all the benefits out of the business and receive will be the sole person who will be taking all the losses out of the business so she will have to get taxed at individual rights and existence of this company will also be still the existence of Hers, and hence I will be advising her to opt for sole proprietorship form of business if he wants to deal with unlimited profit and unlimited liability.