This deliverable will examine your ability to describe and evaluate the organizational framework of a business entity.
When starting a new business venture, you must decide whether you will take over a family business, start a new business, or buy an existing business. You must show investors that you have evaluated each option and decided on the alternative that would be most beneficial for your business. Once you make this decision, you must choose the legal structure that would best suit your business goals. In addition, you will want to consider the types of managers your business will need. Communicate this information to your investors in a well-organized written plan, making sure that you explain the reasoning behind your choices.
If you take over a family business or buy an existing business, you will more than likely keep the business structure and management systems that are already in place. If that is what you choose, then, for part two below, describe to your investors the existing business structure and its advantages for your business. For part three below, describe the current management positions in that business.
Determine the type of business you will start (taking over a family business, starting a new business, buying an existing business, and buying a franchise), and explain why you made that choice.
Identify the legal structure that you feel will best benefit your business (Sole Proprietorship, Partnership, Corporation, or LLC). Discuss the advantages of this structure for your business.
Discuss the types of management positions your business will need, and, using the four functions of management, describe the tasks each management position will perform for each function.
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