Title: Choosing the Right Form of Business for a Digital Start-up Introduction: Nadia is an aspiring and driven entrepreneur with a passion for the digital world and she has an innovative idea for a new mobile app. She wants to establish her digital technology start-up, but she's unsure about the most suitable form of business for her venture. Nadia's app, called "Edu Spot," aims to revolutionize the way people manage, track and complete their courses and assignments during university. She has conducted market research, developed a business plan, and is now ready to formalize her business structure. Options for Business Forms: 1. Sole Proprietorship: Nadia could choose to operate as a sole proprietor. This is the simplest and least expensive form of business to establish. However, she would have unlimited personal liability for the business's debts and obligations. 2. Partnership: Nadia could partner with a friend Tom, who has complementary skills and resources . They would share profits, losses, and management responsibilities. However, both partners would have unlimited liability. 3. Limited Liability Company: Forming a Limited Liability Company would provide Nadia with some benefits, including the fact that this business form is relatively easy to set up and offers a hybrid between a sole proprietorship/partnership and a corporation. 4. Corporation: Nadia could decide to form a corporation, which provides the highest level of personal liability protection. This however involves more complex legal and administrative requirements and taxation considerations. Required : 1. An analysis of business forms 2. Overall business considerations which could affect her decision 3. Recommendation on the best choice for Nadia

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
icon
Related questions
Question

Due Time : 11:55PM ECT
Title: Choosing the Right Form of Business for a Digital Start-up
Introduction: Nadia is an aspiring and driven entrepreneur with a passion for the digital
world and she has an innovative idea for a new mobile app. She wants to establish her digital
technology start-up, but she's unsure about the most suitable form of business for her venture.
Nadia's app, called "Edu Spot," aims to revolutionize the way people manage, track and
complete their courses and assignments during university. She has conducted market
research, developed a business plan, and is now ready to formalize her business structure.
Options for Business Forms:
1. Sole Proprietorship: Nadia could choose to operate as a sole proprietor. This is the
simplest and least expensive form of business to establish. However, she would have
unlimited personal liability for the business's debts and obligations.
2. Partnership: Nadia could partner with a friend Tom, who has complementary skills
and resources . They would share profits, losses, and management responsibilities.
However, both partners would have unlimited liability.
3. Limited Liability Company: Forming a Limited Liability Company would provide
Nadia with some benefits, including the fact that this business form is relatively easy
to set up and offers a hybrid between a sole proprietorship/partnership and a
corporation.
4. Corporation: Nadia could decide to form a corporation, which provides the highest
level of personal liability protection. This however involves more complex legal and
administrative requirements and taxation considerations.
Required :

1. An analysis of business forms
2. Overall business considerations which could affect her decision
3. Recommendation on the best choice for Nadia

Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Similar questions
Recommended textbooks for you
Understanding Business
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON