BL 2990 Lecture Notes - Lecture 5: Franchise Rule, Franchise Disclosure Document, Limited Liability Partnership
Document Summary
Anyone who starts a business must first decide which form of business organization will be most appropriate for the new endeavor. Entrepreneur- one who initiates and assumes the financial risks of a new enterprise and who undertakes to provide or control its management. The entrepreneur needs to consider a number of factors, especially: ease of creation, the liability of the owners, tax considerations, the need for capital. Traditionally, entrepreneurs have relied on three major business forms: the sole proprietorship, the partnership, the corporation. Major advantage is that the proprietor owns the entire business and receives all of the profits (because she or he assumes all of the risk) They provide more flexibility than a partnership or corporation, the sole proprietor is free to make any decision they wish concerning the business such as whom to fire, when to take a vacation, and what kind of business to pursue.
