Managing Financial Resources and Decisions Assignment

Managing Financial Resources and Decisions - Assignment Example The advantages of being a sole trader make a business owner easy to start and run his business, no retirement for registration but it has boundless liability for debts, greater personal assets are at risks and many business taxes to settle. You may find lack of credibility when it comes to marketplace, hard to attract loans and investments and get it more difficult to sell your business. You need to consider that business imply lasts based on the lifetime of the sole trader. Thus, if you want to  start up  your business as a sole trader, it is good to search for company office and secure the Intellectual Property Office to make sure that the name you want for your business is not existing and protected by other business owner/s. Partnership, on the other hand encourages you and your brother to run together in the business that you both are trying to venture. Each of you shares responsibility in running the consultancy business, shares equally on profits or loss unless otherwise s tated in your terms and agreement. Both of you are liable within the partnership. Your partnership with your brother gives full advantages which requires no pay for income tax and it distributes the partnership income to the partners and both of you will pay the business tax on their own share.   The partnership in business structure you plan involves no registration between you and your brother and it offers wide-range to share the costs of business operation costs such as those people who operates to share a joint office. The disadvantages of this type of business  form  includes the partners liable for debts acquired by any of you, partnership conflicts may arise, possible complicating issues such as when their partner dies, or leave the partnership and personal assets are also at risk. Since you are the more business oriented compared to your brother and he is undoubtedly a little more technically gifted than you, the good blending or combination of your effort and his ski ll make both of you best to invest and make a partnership on your business. It offers the quality steps a long way your business works also  the contribution of  your brother’s work to make both of you successful in your business consultancy, besides  the combination of  your heads as engineers surely will make you reach your successful business venture. Possible financial sources for your business are: Own Capital    Partnership is the form of structure of your business together with your brother so own capital is the common source of finance, especially for startup is money from the  individuals  who are forming the business. Advantage: Own capital is a  costless  form of finance, but carries the risk of the money being lost. Disadvantages: The money once mismanage is totally lost and considered a personal  endeavor  which can affect business operations adding to liabilities.