Question

If you were to start a business, which forms of business ownership would you select? Why? What might be the biggest drawback for you in this form of ownership?

Answer 1

If I have to start a business, I will select sole proprietorship forms of business ownership. I will select sole proprietorship because it is easy to incorporate and it has few regulatory requirements and low set-up cost of business operation so ideal for new start-ups. The decision making process is fast in this type of ownership as the owner has complete managerial control over business.

The biggest drawback of this form of ownership is that owner has unlimited personal liability and business is solely dependent on the owner of the company.