AROKA Weekly Takeaways

Best Legal Structure for a Business

Starting a business is a step-by-step process and requires legal structure and series of strategic decisions. According to Ohngren (2012), the four major legal business structures are sole proprietorship, limited liability company (LLC), partnership, and corporation. Business owners choose either of these legal structures depending on their pros and cons. My business would be successful using the best of each of these methods, as they all have different benefits.
A sole proprietorship business is owned by one person who is responsible for any liabilities. It is a low-cost and simple option, especially for entrepreneurs looking to test their business idea. On the other hand, partnership is a two or more people business. There is limited and general partnership. The general makes all partners liable for business losses, while a partner is only liable to the business up to the amount of his or her business asset holding. I prefer and will apply the sole proprietorship as it is low cost and easy to option. Also, I do not have to worry about losing my personal assets. I can later have the business go initial public offering if successful.
The Limited Liability Company is a legal business structure that offers entrepreneurs liability protection without double taxation. Incomes and losses often pass through to the business owners and are always included in their individual tax returns. Corporation, on the other hand, is a group of people operating business as independent legal entity. Meaning, personal assets of the owners are protected from business liabilities. I will use the LLC for my organization as it is simpler to set up, simpler to manage, requires less formality while still giving the liability protection and avoiding double taxation.

Three Takeaways from Last Week’s Lecture

During the previous lecture, one of my takeaways is strategic management with Information Technology is a crucial construct in any business setup. IT systems make data easier to manage. In effect, an organizational development which includes improvement of the quality of products for consumers is spurred. I definitely want my business infrastructure to be technologically and strategically managed. This will improve efficiency, culture, and relationships between customers and employees within my organization. Implementing information technology to my business will give flexibilities to my data management, human resources, and business processes.

Another takeaway is errors in customer service often fall on the organization and not the employee that caused the error. I look forward to being a leader, and taking criticism and making sure customers are satisfied are some of the responsibilities I am willing to challenge. It is important that organizations meet consumers’ expectations. It is the duty of a CEO to make sure that consumers’ expectations are met, and that customers are satisfied.
Mission, vision, goals, values, and strategies are the key elements of strategic management. Having tangible missions facilitate the probability of achieving realistic goals. My mission is to improve customer experience and ensure the best performance in business. I also would like to use the Porter’s Five Forces to analyze my products in order to make sure that they stay as one of the leading products in the market.

Reference

Ohngren, K. P. (2012). How to Choose the Best Legal Structure for Your Startup. Retrieved from https://secure.colostate.edu/article/,DanaInfo=www.entrepreneur.com,SSL+224976
Porter, M. E. (2008). The Five Competitive Forces That Shape Strategy. Retrieved from https://secure.colostate.edu/ares/,DanaInfo=reserve.colostate.edu,SSL+ares.dll?Action =10&Type=10&Value=73374