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Essay heading: Justification For Using A Corporate Business Structure
 
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Issue: Business
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Date added: December 9, 2002
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No of pages / words: 5 / 1133
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In determining which of these forms best accommodates a business, multiple factors are taken into consideration: • The type of business in operation- if productivity is limited to individual skills, then a sole trader or partnership should be in use. • The amount of risk involved- if the business comprises of relatively low risk, then a sole trader enterprise or partnership is most suitable...
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However, if employees are likely to face high risk, then a corporate structure should be enforced because of the insurances and indemnities that a company can take out. Unlimited liability exists for the owner in both partnerships and sole trader enterprises, thus, personal assets can be put at risk for the debts and borrowings of the business...
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