Which business organization entity is preferable for the following business: local family owned and operated farmer’s market in Small Town, USA; purchases produce from local farmers/growers; parents are financing venture; five children are to run business and conduct daily operations? Explain your answer.
Note: The solution is provided in a generalized way.
A business organisation refers to the legal structure or framework that a business entity uses to function, manage its activities, and establish its ownership and management structure. The choice of company organisation has an impact on many areas of the business, including liability protection, taxation, governance, and access to finance. Sole proprietorships, partnerships, corporations, limited liability organizations (LLCs), cooperatives, and other kinds of business organizations are common. The most appropriate company organisation is determined by criteria such as the type of the firm, the number of owners, the level of control desired, and the legal and financial considerations of the business owners.
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