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Choice of Suitable Form of Organization

The above ideal characteristics shall not be considered in isolation but has to be dieted by some of the requirement listed below.

  1. Type of business- trading, manufacturing, commercial, service, consultancy etc.
  2. Expected volume of business.
  3. Area of operation.
  4. Finance requirements for starting and future expansion.
  5. Degree of direct control over, management desired by the owner(s).
  6. Willingness of owner(s) assumes personal liability for business risks.
  7. Arrangement of sharing profits/losses.
  8. Expected life span of business.
  9. Tax advantages under different types of ownership.
  10. Degree of government regulation and the freedom desire by the owner(s)
  11. Facilitation for getting the maximum capital for the enterprise.