Legal, Social, and Economic Enviornment of Business

LEGAL, SOCIAL, AND ECONOMIC ENVIORNMENT OF BUSINESS 2

Abstract

This paper examine differences between sole proprietorship, partnership, and a corporation and how they would affect the business owner. Over the years technology and businesses have been growing and for some expanding. Between sole proprietorship, partnership and a corporation there is vigorous research that should be done before a business is launched such as the start-up cost, taxes and the economic status. A corporation has shown to have a higher revenue percentage than an sole proprietorship and a partnership but is the lesser percentage of businesses.

LEGAL, SOCIAL, AND ECONOMIC ENVIORNMENT OF BUSINESS 3

Legal, Social, and Economic Environment of Business, nontechnological managerial and organizational factors influence the exception of new technology and the standard of their product quality, ( www.nap.edu/openbook). In the world today technology is rapidly and there is always room for new inventions of technology. When inventing a product the inventor should always carefully view how the product will accommodate consumers and how it would oversee the competitors. Financial options should be thoroughly researched to see what would be the best business option for them, research should also be done on possible locations and the different ethnic groups in that location. For persons with little funds to invest in their business/invention they may want to look at the options of a partnership or even pitching their product to a corporation. Person's starting a business should be very aware of the laws, regulations and taxes that would be involved in their business. There should even be a survey given to consumers; not giving away what the product is but discrete questions about what consumers think about some of the things the home appliance could do so they would have a good idea of how to make sure the product would be marketable to every one of all ages and different cultures.

In starting a business there are important decisions that need to be thought about and made like choosing between; sole proprietorship, partnership and a corporation. Unlike a partnership or corporation sole proprietorship reap the all of the benefits of a successful business such as the capital. A partnership has to split the capital between the partners and the corporation divides the capital among all of the shareholders. In choosing a corporation a

LEGAL, SOCIAL, AND ECONOMIC ENVIORNMENT OF BUSINESS 4

People looking to open a business can pursue investors to fund their business, whereas sole proprietors and partners have to fund their business themselves. Although a person would have a lack of control