Assignment task: Asad has hired you as his business consultant to help him make good decisions. Give him advice on his questions:
What are the advantages and disadvantages of forming the business as:
- a corporation?
- a partnership?
- a limited liability company?
- What is his potential liability as an individual and what can he do to limit his risk?
- What issues might arise from following his business associates' advice?
- What other factors should he take under consideration?
- In helping Asad with the business plan, explain:
- How he can value his business
- What the business can do to reduce its risk
- How the owners can limit their liability
- What the business should (and should not!) do to protect against lawsuits
- What factors he must consider on how to raise capital
- What mix of capital the business should have