Organizational Forms Essay Example | Topics and Well Written Essays - 1750 words

Organizational Forms - Essay Example The major characteristics of sole proprietorship are as follows: Liability: Liability is the biggest disadvantage in sole proprietorship organizational form. In sole proprietorships, if the business suffers huge amount of dues which cannot be recovered from revenue, the owner will be personally liable for paying the entire amount. On the flip side, if proprietor possesses unpaid dues, the creditors can even realize those from the business assets (McGuire, Woods & McLean, n.d.). Income tax: Sole proprietorship business is a taxable unit. In this business form, there is little opportunity for tax planning, as the owner is completely liable to pay all the taxes derived through income (McGuire, Woods & McLean, n.d.). Longevity or continuity of the organization: The longevity of sole proprietorship business depends largely on the existence of its owner (Beatty, Samuelson & Bredeson, 2012). Control: In sole proprietorship, the business owner has the entire control over the resources and bu siness decisions which is a significant advantage of sole proprietorship (AllBusiness, 2007). Profit retention: The other advantage of sole proprietorship business is that it allows the business owner to enjoy complete profit retention (McGuire, Woods & McLean, n.d.). ... p business is quite easy to set-up with minimum capital; however, it significantly depends on the financial ability of the proprietor (McGuire, Woods & McLean, n.d.). General Partnership General partnership is the second type of organizational form which denotes business relationship between individuals forming independent organization through mutual contracts. Liability: Liability is an advantage in general partnership because each business associates are mutually and individually responsible for every facet of the business including profit/loss or major decisions (McGuire, Woods & McLean, n.d.). Income taxes: Similar to sole proprietorship, general partnership organizational form has a single level of taxation. This type of business does not fall under the taxable unit, rather it is considered as a tax reporting unit (McGuire, Woods & McLean, n.d.). Longevity or continuity of the organization: Longevity is a significant disadvantage of general partnership. There is supposed to be s pecific time duration for the term of general partnership. The longevity of general partnership depends on the contract. Whenever a partner is discharged from the contract, the other existing partners can take over the vacant place or they can even decide to wind-up the complete business (McGuire, Woods & McLean, n.d.). Control: Each business associates possess equal level of control on business decisions (McGuire, Woods & McLean, n.d.). Profit retention: Business associates share the gross profits in between themselves and are taxed independently (McGuire, Woods & McLean, n.d.). Location: The taxation in general partnership relies on the principal regulations location where revenue has been generated (Beatty, Samuelson & Bredeson, 2012). Convenience or burden: A common burden in general

Organizational Environment Assignment Example | Topics and Well Written Essays - 750 words

Organizational Environment - Assignment Example Therefore, the firm should consider the factors such as the availability of the commodity, which will ensure sustained supply hence the customers, are not disappointed (Jones, 2010). They should also consider their technical ability or their ability to invest in the machinery, which will ensure that there is value addition to the product as well as large-scale productivity. The young agile manager should also go out and ascertain the actual market by quantifying it before making the enormous investment. The manger should also consider conducting intensive research on the possible ways of differentiating the product to attract a wider market through the ever-growing technology and the cultural diversity. Technology available should also be considered as the firm tries to venture into production, as technology will facilitate both mechanization and automation, which will go the large way to enlarge the production of the Kaolas. The natural factors enhancing the survival of the animals have to be considered as they affect production (Ito & Rose, 2004/2005, winter). 1. What additional factors should be considered if Krazy Koalas decides to expand to Ireland, Spain, and possibly the Middle East? Due to geographical differences between the US and Ireland, Spain, and the Middle East, the political, social and economic factors will tend to be different. Therefore the other factors which have to be considered before extending the supply of the Kaolas in the Ireland, Spain and middle east are:- political factors, these are the decisions pertaining to taxation, investments and fiscal policies of the country. If the policies of the mentioned governments are not in favor of imports or policies are designed to discourage the importation from certain countries then it would be costly hence unwise to expand their markets to these countries. Socially, the company should consider cultural diversity between these two countries, in one way or the other there might be cultures, whi ch would not support the consumption of koalas in some form (Jones, 2010). Therefore, the essence of research on the different cultures and the name they give to the product or the form in which they are likely to consume it for the sake of providing a better product to the right group of people. Such studies will facilitate differentiation, which is healthy for increased production. Economically, factors such as the inflation rates and exchange rates must be looked at as they are likely to determine whether it is economical to produce and supply to these countries or not. As at this time, the fall in value for the dollar has made the affordability of the koalas in both Spain and Ireland to increase, as they are quite affordable. 2. What are your specific recommendations for Krazy Koalas? What should the company do, and why? Krazy koala is a company, which has shown prospects of growth due to the ever-increasing demand for the products they offer. The management should therefore be tasked with the responsibility of ensuring that they differentiate the products they are providing to widen the base of their supplies as well as try and block the potential competitors. The management can also look for ways of minimizing the production costs as much as possible which would make way for the expansion of the profits to support the firm in its