Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.

Respuesta :

The following are the organizational forms a company might have as it evolves from a start-up to a major corporation and the advantages and disadvantages of each form.

  • A sole proprietorship: Advantage: Single ownership and concentrated decision making authority; Disadvantage: Risk of permanent bankruptcy.
  • Partnership: Advantage: Shared responsibilities; Disadvantage: Conflicts over financial issues.
  • Corporation: Advantage: Multiple investors; Disadvantage: Large shares in profit.
  • Multinational company: Advantage: Large network; Disadvantage: Increased operational costs.

Answer:

A sole proprietorship: Advantage: Single ownership and concentrated decision making authority; Disadvantage: Risk of permanent bankruptcy.

Partnership: Advantage: Shared responsibilities; Disadvantage: Conflicts over financial issues.

Corporation: Advantage: Multiple investors; Disadvantage: Large shares in profit.

Multinational company: Advantage: Large network; Disadvantage: Increased operational costs.

Explanation: