Deliverable

Competency

Evaluate the different types of business entities.

Instructions

You are a new consultant at T&G consulting firm. T&G has training to prepare new colleagues for consulting with business clients who want to start new businesses. Parts of the training you are already familiar with—sole proprietorships, partnerships, corporations, limited liability companies, and how to evaluate different business entities. To better understand your own perspective, there is a self-reflective questionnaire as part of the training.

For this questionnaire, reflect on and address the following items. Consider presenting the information from this first section in a table.

Out of the general category of choosing a business entity (sole proprietorships, partnerships, corporations, limited liability companies):
Describe the basic features of sole proprietorships, partnerships, corporations, and LLCs.
Explain what you think is the most important feature of each business entity.
Compare the advantages and disadvantages of each type of business entity.
Starting a new business involves many considerations and decisions. Please answer the following questions in a paragraph for each:

What are the potential risks or starting a new business? State 3-5 risks.
What questions should you ask to determine how the business should be formed?
How do the number of owners influence how the business should be formed? Please explain.
How do financial considerations influence the decision for how the business should be formed? Please explain.

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