Risk Being A Failure Of The Business example essay topic
461 words
The new age of business is here. There are so many opportunities for men and women to start a business. Though the road may be rocky the rewards can be sweet. However you have to address certain concerns before starting a business. There are so many risks and benefits associated with starting a new business organization.
Starting a business carries with it a high risk. Either that risk being a failure of the business or success. The sad truth is that most businesses don't make it past two years. Furthermore there are some business organizations that carry this high risk of failure. A sole proprietorship is explained as a single owner or management head that all profits and liabilities fall on. This form of business can be extremely risky.
For example if the company is sued of fails all of the liability is on the single owner. Likewise a partnership can also be just as chancy. Each partner is responsible for any debts and liabilities of a business including failure. There are business organizations that can reduce the risk of failure. These business types are usually harder to start from scratch than the sole proprietorship and partnership. One of these examples are corporations.
Corporations are more realistic for large scale economic activity. They are owned by shareholders who are not responsible for losses greater than the amount of their investment. If sued no single person will be sued, only the corporation as a whole. To illustrate, for instance a limited liability corporation is a combination of personal liability protection with tax benefits and the simplicity of a partnership.
In simpler words the owners are not responsible for its debts and benefit on their taxes. Though there are business organizations that are risky and those that reduce risk. Therefore what business organization would be the best choice? A partnership is usually the best route to take. In a partnership it is easier to start.
Partners spit the cost of starting the business and the cost of failure. Most people don't have the money to start a corporation with all the fees and lawyer fees to draw up important papers. White collared men and women, after doing their research will usually decide on starting a business with a partnership. Explore the realm of business organization. Even though a partnership may work the best it doesn't work the best for everybody. Studying past businesses and what works now in the New age a niche may be found.
The rich are never timid, life is a game of risk, so take a risk.
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