Starting and Naming a Business (Administrative Law and Government Research Paper

Starting and Naming a Business (Administrative Law and Government Regulation) - Research Paper Example Through franchising, the business will be associated with well developed brands and reputation. Disadvantages; franchisees usually have to operate according to the operations rules of the franchisor. Franchisees are required to pay ongoing fees to the franchisor. There is less control especially while selling the business, since there are procedures to follow (Pride, Hughes & Kapoor, 2011). The following are the disadvantages and advantages of a sole proprietorship. Advantages; it is easy and uncomplicated to start this form of business. There are few formal commerce requirements. There is direct motivation since the entrepreneur assumes all risks and earns all the profit. There is better control since the entrepreneur is the sole decision maker. There are minimal legal expenses for starting sole proprietorship. There are no company tax payments. Disadvantages; the entrepreneur make all business decisions and assumes all responsibilities of the business, including business liabilities in case of insolvency. Entrepreneurs may experience difficulties while raising cash needed to start and sustain a business (Pride, Hughes & Kapoor, 2011). According to Pride, Hughes & Kapoor (2011), the following are the disadvantages and advantages of partnerships. Advantages; there are no prescribed requirements for the formation of a partnership. There are no prescribed requirements for the business operations. Therefore, it is inexpensive to operate partnerships. Partners are taxed individually, and this may result to lower taxation. Disadvantages; partnership is not a separate lawful entity implying that partners are, in their individual capacity, accountable for the business debts. The death of a partner may result to termination of the partnership. There may be difficulties in the decision making process. The following are the disadvantages and advantages of a corporation.