1. I am starting a software company in which I plan to sell software to fellow students. There are a number of choices relating to the form of business organization I could choose. For example, I could form a proprietorship, a partnership, a limited liability corporation, a Sub-Chapter S corporation or a C corporation. To limit my personal liability and to be able to attract potential investors and potential lenders more easily I would form a C Corporation. Daniel Grant writing in American Artist (2003) suggests there are advantages and disadvantages of forming a corporation. For example, a C corporation pays corporate income tax but owners can deduct their salaries as business expenditures and carry forward losses and reinvest profits back into the corporation. On the other hand, the expense and legal requirements of incorporating and remaining properly incorporated can outweigh the benefits if the corporation does not earn a significant amount of money (Grant, 2003, 14).
I would run my business in a professional but relaxed manner. I would make sure to develop a business plan before entering into any field. Industry research is essential to developing a comprehensive business plan. A business plan will help entrepreneurs achieve their goals. Business plans define and describe the business helps define short term and intermediate term goals.
I would carefully select employees when starting my business. I would delegate authority to people whose good judgment I trusted. I would reward loyalty to the business. I would expect superior performance. I would demand no more from my employees than I demand from myself. I believe in leading by example. I would operate my business in an ethical manner. I would purchase insurance to protect my company from catastrophic losses. I would employ an attorney to protect my company from legal liability. I would employ an accountant to ensure the accuracy of my financial reports, a...