Consider the following factors when considering a form of business ownership
Vikitha Barnes
RE: Week 3 Discussion
Good Evening Class and Professor,
The friends should consider the following factors when considering a form of business ownership:
Continuity and transferability: These are important if one partner decides to quit the business, dies, or they want to sell the business.
Financing: The two friends should consider their source of financing for the business, for instance bank loans or savings before choosing the form of business ownership.
Risk tolerance: Businesses are prone to risks including lack of clients which may result to closing of the business, fire, or lack of resources to run the business. One should evaluate chances of risk and how they will handle it before selecting form of business ownership.
General Partnership would be a good form of ownership that will best serve the organization now and in the future. The partnership will allow the two friends to share on the legal liabilities, financial, profits, and assets thus making it easy to start the business. This form of ownership is good when the two individuals do not have all the required information, finance, and knowledge to start the business. However, a partnership makes it easy to start the business as the participating individuals can contribute what is missing in the business.
The following criteria helps in evaluating different franchise opportunities:
1. The market: The first thing to check is whether the market has been defined. Market availability is essential in effective operation of a franchise.
2. Company history: It is important to evaluate company history to identify when the company started, its achievement so far and the challenges it has encountered in its operations, and how it has managed to overcome the challenges. This information is essential before a franchise move or agreement.
Kumon Franchise: This is the smartest choice or strategy in education franchising. The franchise basically deals with tutoring and it has operated for the past 18 years.
Benefits
1. It has made education easy because students can seek for additional information.
2. It has enabled distance learning.
3. It has helped people to acquire more knowledge.
4. It is helpful, especially during the Covid-19 era.
Limitations.
Some people do not have money to pay for extra couching.
It is only available to people who have access to internet connectivity.
Answer preview to consider the following factors when considering a form of business ownership
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