The purpose of this document is to provide clear and tangible information. The data within will contain a comparison between the three main structures of business directly related to the product and a conclusion of what business decision should be made; based on the greater good of the overall product in mind.
New home appliance which meets consumer needs. This product would be able to assist the consumer on an everyday basis. New technology is much safer than current products in the market. Possibility for development of other products based off this new technology. The market for this “type” of product is saturated. Financially resources are low. ...view middle of the document...
Advantages in this case would include: More financial freedom. Not limited to self-reliance. Resources would be in much higher numbers. Skills of individuals would help in development stages. Disadvantages include: Difference of opinions or how things should be done. Still become personally liable for anything that has gone wrong. Need to establish a place to produce the product. Growth of company or new products would cost significantly to do each time.
Third being corporation. Company is owned by stock holders. Advantages to this would be: Funds available to start and operate factories. Advertisement would be great and vast. Disadvantages would be: loss in control, less money, more taxes, and more people to answer to.
Note: (The information provided above was from class source BUS105 Unit 1 “What If” analysis. (2010). Retrieved from AIU virtual campus)
Based on the facts of each business structure, bringing the product to a corporate level would be the best decision. This was determined based on multiple facts. Financial obligation played a huge role in the decision making process. The start of the company would exceed the finances available if going into a sole proprietorship. If any further growth of the...