Business Entity Selection
Running head: BUSINESS ENTITY SELECTION
Business Entity Selection
Kina I. Drummond
University of Phoenix
MSNA0460; LAW 529
Richard D'Ambrosio
November 6, 2007
Business Entity Selection
Many factors have to be considered when entertaining the notion of starting a business including the investment of time, research and capital. From the generation of an idea or concept to its introduction into the marketplace substantial commitment and an entrepreneurial spirit is essential. "Entrepreneurial start-up efforts are a significant and growing force in our nation's economy. Along with this growth, however, is [sic] an increasing number of business failures. One probable reason for these failures is that the people who start them lack pertinent entrepreneurial abilities" (Olson, 1985, p. 30). To aid in alleviating such failures there are a number of articles, books, and research on starting a business, yet there are no fail proof methods. General guidelines and principles are outlined, though. van Gelderen, Thurik, & Bosma (2006) note that there are four phases generally mentioned when starting a business:
(1) determining a business should be started, (2) recognizing an opportunity and creating a concept, (3) assembling sources and creating the organization, and (4) exchange in the marketplace. These steps loosely represent a fraction of the work and research necessary during the preparatory or pre-startup phase of a business. (p. 320)
This paper will address the basic elements of business formation by identifying an idea or vision for a business, disseminating legal and regulatory issues to be considered when creating a business, selecting professionals and mentors for advice, and determining a legal entity for the business.
Business Idea
A business idea can occur at any time. Whether through frustration at job processes, envisioning a better way to handle job...
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