Managing Financial Resources and Decisions Assignment

Managing Financial Resources and Decisions - Assignment ExampleThe advantages of being a mend trader derive a barter owner easy to start and run his business, no retirement for registration but it has boundless liability for debts, greater personal assets are at risks and many business levyes to settle. You may find lack of credibility when it comes to marketplace, hard to attract loans and investments and get it more difficult to shop your business. You need to consider that business imply lasts based on the lifetime of the restore trader. Thus, if you want tostart upyour business as a sole trader, it is good to search for company office and secure the Intellectual Property Office to defend sure that the name you want for your business is not real and protected by other business owner/s. Partnership, on the other hand encourages you and your comrade to run together in the business that you both are trying to venture. Each of you shares responsibility in running the consul tancy business, shares equally on profits or loss unless otherwise stated in your terms and agreement. some(prenominal) of you are liable within the partnership. Your partnership with your brother gives full advantages which requires no pay for income tax and it distributes the partnership income to the partners and both of you will pay the business tax on their own share. The partnership in business structure you plan involves no registration between you and your brother and it offers wide-range to share the costs of business operation costs such as those people who operates to share a joint office. The disadvantages of this type of business ground levelincludes the partners liable for debts acquired by any of you, partnership conflicts may arise, possible complicating issues such as when their partner dies, or leave the partnership and personal assets are alike at risk. Since you are the more business point compared to your brother and he is undoubtedly a little more technical ly gifted than you, the good blending or combination of your effort and his skill make both of you best to invest and make a partnership on your business. It offers the quality steps a long way your business works alsothe contribution ofyour brothers work to make both of you successful in your business consultancy, besidesthe combination ofyour heads as engineers surely will make you reach your successful business venture. Possible financial sources for your business are Own Capital Partnership is the form of structure of your business together with your brother so own capital is the common source of finance, especially for startup is money from theindividualswho are forming the business. Advantage Own capital is acostlessform of finance, but carries the risk of the money being lost. Disadvantages The money once mismanage is totally lost and considered a personalendeavorwhich can affect business operations adding to liabilities.