M 7

Question 1

The organization plan provides a detailed description of the business in terms of the following:

Answer 1

1. Form of the business organization
2. Liability of the owners
3. Organizational structure
4. Roles and responsibilities
5. Salary requirements

Question 2

The factors affecting the selection of the most appropriate business form include the following:

Answer 2

1. Capital requirement
2. Liability of the owners or owner
3. Management and supervisory skills
4. Tax implications
5. Government intervention
6. Nature of the business
7. External financing requirement