Question and Answers Essay Example | Topics and Well Written Essays - 3750 words

Question and Answers - Essay ExampleWith regard to ownership, a business raise be have by one individual, a small group of individuals and it can be owned by the public at large as a publically traded company.For in camera owned companies, the main advantage is control since these companies do not have to keep the wishes of the shareholders in psyche while making large business decisions. Additionally, the profits earned by them are taken by the owners and not divided amongst the shareholders. However, they may not have access to large amounts of capital which publicly owned companies can generate from issuing shares. Publicly owned companies also have the advantage of limited indebtedness in case the business fails or the company hits the ground regarding the investments made by the company.The primary citation of capital for privately owned businesses are investors such as venture capital companies, individual investors and banks which cut into out loans to privately owned co mpany. For companies under a partnership, several individuals may bring their assets together and manipulation that as a capital base for the company. The relationship between a business and its investors may be defined by ownership where the profits made by the company are owned by the investors until their liability has been paid up.The two most important factors which must be understood well in the beginning a business is started are the business plans and the value chain which the business seeks to provide to its clients. In the premier(prenominal) instance, the business plan shows investors and company owners the method by which the company plans to make money over a period of time. The value chain shows the process by which the company will deliver a certain(p) value to the customers and how the customers will reward the value given to them with money that can be used by the company. Once these elements are understood, it becomes easy to see if the