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Small Business Ventures in the U.S. Ref: Babiar (#1501). The client requeste

REVIEW OF RELEVANT LITERATURE: OPERATIONAL VARIABLES

This study was concerned with predicting the success of small business ventures in the United States. The essential question addressed within this context was the relative significance of the management of the operational variables associated with the success of a business enterprise as opposed to the background and personal characteristics of the individual beginning such a venture. In this chapter, literature is review in relation to the operational variables associated with the success of a small business venture. Literature relevant to the relationship between an individual's background and personal characteristics and the success of that individual in a small business venture is reviewed in the following chapter.

Five classifications of operational variable affecting the success of a small business venture are addressed in this chapter. These variable classifications are organizational form, capital generation, shortterm capital management, pricing and profitability management, and longterm capital management.

The form of business organization has a direct impact on the financial structure and financial performance of a firm. This impact results from differences in income tax liabilities for different types of business forms, and differences in the abilities of the different types of business to generate capital (Brigham, 1993, p. 94). Important organizational forms for many

small business owners to consider are the Subchapter S

Corporation and the Subchapter C Corporation, which is a special version of S type corporation.

The attraction of the Subchapter S and C Corporations lies in potential federal income tax benefits. On a broad level, the Subchapter S Corporation is limited to 10 shareholders, while a requirement for the Subchapter C Corporation is that at least 50 percent of the stock must be held by no more than five shareholders.

The fed...

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Small Business Ventures in the U.S. Ref: Babiar (#1501). The client requeste. (1969, December 31). In LotsofEssays.com. Retrieved 10:14, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1700276.html