Sole Proprietorship, Partnership, or Corporation

1822 Words8 Pages
BUSINESS PROSPECTS OF “THE THUNKER” 1 BUSINESS PROSPECTS OF “THE THUNKER” Elizabeth Alfred Bus105 October 2010 BUSINESS PROSPECTS OF “THE THUNKER” 2 Business owners can form sole proprietorships, partnerships, or corporations. Each type of business entity has its pros and cons that can have a significant impact on the business and its owners. When considering a new product for a saturated market such as the clicker or the three-pronged power cord, there are several pros and cons to consider with each possible choice. Although the author personally has no inventive talents…show more content…
Advertising and growth would necessitate investigating deeper pockets then the ones typically available to you and me. This brings us to the possibility of a partnership. Set-up expenses are still at a minimum, and the legal documentation required to form a partnership is simpler, more straightforward, and less complicated than what is needed for incorporation. Partners have more motivation than the investors that might be scrounged up in a sole proprietorship or a larger more expansively financed incorporation; as they directly share in the profits and most immediate business decisions. There are improved growth capabilities, something much more limited in a sole proprietorship, and generally it is easier to procure capital and further funding for financing a business operating under a partnership than it is for a sole proprietorship. The funding for startup costs and expansion is pooled with the resources of all partners. Multiple skill sets are brought to the benefit of the business as well. There is more flexibility found in decision making then with the multiple and varied investors of an incorporation. For this particular scenario, with the limited funding and growth costs of an individual family on a budget, but potential to tap a saturated market and create an unlimited amount of demand, and thereby an unlimited amount of profit, a partnership would be a vast improvement for the possibilities of “The Thunker” over a sole proprietorship. There are some
Get Access