Managing Financial Resources and Decisions Assignment

Managing Financial Resources and Decisions - Assignment compositors caseThe advantages of being a sole trader make a business protester easy to come on and run his business, no retirement for registration but it has boundless liability for debts, greater personal assets argon at essays and many business taxes to settle. You may find lack of credibility when it comes to marketplace, hard to attract loans and investments and labour it more difficult to sell your business. You need to consider that business imply lasts based on the life history of the sole trader. Thus, if you deprivation tostart upyour business as a sole trader, it is good to reckon for company office and secure the Intellectual Property Office to make sure that the name you want for your business is not existing and protected by former(a) business owner/s. Partnership, on the other hand encourages you and your brother to run together in the business that you both atomic number 18 trying to venture. to each o ne of you packages responsibility in running the consultancy business, shares equally on profits or loss unless otherwise utter in your terms and agreement. Both of you are liable within the partnership. Your partnership with your brother gives full advantages which requires no pay for income tax and it distributes the partnership income to the partners and both of you will pay the business tax on their own share. The partnership in business body structure you plan involves no registration between you and your brother and it offers wide-range to share the costs of business operation costs much(prenominal) as those people who operates to share a correlative office. The disadvantages of this type of businessformincludes the partners liable for debts acquired by any of you, partnership conflicts may arise, possible complicating issues such as when their partner dies, or leave the partnership and personal assets are also at risk. Since you are the more business oriented compared to your brother and he is undoubtedly a little more technically gifted than you, the good blending or combination of your effort and his skill make both of you stovepipe to invest and make a partnership on your business. It offers the quality steps a long focus your business works alsothe contribution ofyour brothers work to make both of you triple-crown in your business consultancy, besidesthe combination ofyour heads as engineers surely will make you reach your thriving business venture. Possible financial sources for your business are Own Capital Partnership is the form of structure of your business together with your brother so own capital is the common source of finance, especially for inauguration is money from theindividualswho are forming the business. Advantage Own capital is acostlessform of finance, but carries the risk of the money being lost. Disadvantages The money once mismanage is totally lost and considered a personal featwhich can affect business operations addin g to liabilities.