please can someone help me with the answer? it\'s for the Entrepreneurship and S

Question

please can someone help me with the answer? it's for the Entrepreneurship and Small Businesses Management course.
thanks a lot

4. In launching a new business, an entrepreneur must choose a legal form of organization, which will determine who the actual owners of the business are. The three basic options are sole proprietorship, partnership, and corporation. Some entrepreneurship experts insist that the two most basic forms of business-sole proprietorship and partnershop should never be used. While these forms clearly have drawbacks, they are ] workable. Fully describe all three forms of business organization and explain why you would choose either a sole proprietprship or a corporation for your roofing business. You do not have a partner. 20 points

Explanation / Answer

A sole proprietorship firm is a business owned by a single person. This is the simplest form of business, subject to minimal regulation.

A partnership firm is a business owned by two or more persons. It may be viewed as an extension of sole proprietorship . The partners bear the risk and reap the rewards of the business.

A corporation is a business collectively owned by the shareholders who entrust the task of management to their elected representatives called the directors.

I would choose sole proprietorship for the roofing business because I can retain full control over the business and also the business does not require large capital investment . The business can be setup by simply obtaining a license if it is required and the regulation faced in very minimal.

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