Every business entity needs to select an appropriate legal structure o

1.	Every business entity needs to select an appropriate legal structure or framework to work in. Why?
Answer» (i) Setting-up a business is not an easy task. (ii) An enterprise is a separate and distinct unit, institutionally arranged to conduct any type of business activity. (iii) It needs to combine the necessary beings, materials, tools, equipments, working space and appurtenances, brought together in a systematic and effective manner to accomplish the entrepreneur’s desired objective. Thus, every business entity needs to select an appropriate legal structure or framework to work in which determines the extent of ownership and responsibility of proprietor(s).

Every business entity needs to select an appropriate legal structure or framework to work in. Why?

Answer»

(i) Setting-up a business is not an easy task.

(ii) An enterprise is a separate and distinct unit, institutionally arranged to conduct any type of business activity.

(iii) It needs to combine the necessary beings, materials, tools, equipments, working space and appurtenances, brought together in a systematic and effective manner to accomplish the entrepreneur’s desired objective. Thus, every business entity needs to select an appropriate legal structure or framework to work in which determines the extent of ownership and responsibility of proprietor(s).

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