6 Appropriateness of different forms of ownership

Question 1

What are the factors affecting the appropriateness of different forms of ownership?

Answer 1

1. Growth (start small and get more bigger as more capital is needed)
2. Size
3. The need for finance
4. Control (some owners like independence)
5. Limited liability (to protect personal assets)

Question 2

Define profit satisficing

Answer 2

Making enough profit to satisfy the needs of the business owners