Evaluate the different types of business entities.
You are a new consultant at T&G consulting firm. T&G has training to prepare new colleagues for consulting with business clients who want to start new businesses. Parts of the training you are already familiar withâ€”sole proprietorships, partnerships, corporations, limited liability companies, and how to evaluate different business entities. To better understand your own perspective, there is a self-reflective questionnaire as part of the training.
For this questionnaire, reflect on and address the following items. Consider presenting the information from this first section in a table.
- Out of the general category of choosing a business entity (sole proprietorships, partnerships, corporations, limited liability companies):
- Describe the basic features of sole proprietorships, partnerships, corporations, and LLCs.
- Explain what you think is the most important feature of each business entity.
- Compare the advantages and disadvantages of each type of business entity.
Starting a new business involves many considerations and decisions. Please answer the following questions in a paragraph for each:
- What are the potential risks or starting a new business? State 3-5 risks.
- What questions should you ask to determine how the business should be formed?
- How do the number of owners influence how the business should be formed? Please explain.
- How do financial considerations influence the decision for how the business should be formed? Please explain.