Page 173 - Business Principles and Management

project:
MY BUSINESS , INC.

CORPORATE FORM
Corporations are another form of business ownership. In addition to
financial advantages, there are other reasons to organize a new business
as a corporation. In this segment of the project, you will study some of
those reasons as well as the procedures necessary to form a corporation
in your state.

DATA COLLECTION
1. Make a list of the advantages and disadvantages of the corporate
form of ownership.
2. Write out the legal procedures you must follow in your state to
organize a close corporation to operate your business. Obtain the
information from a library, the Internet, or a government office.
3. Interview the owner of a small business that has been organized as
a corporation. Ask the owner to identify the advantages and disad-
vantages of the corporate form of ownership for a small business.
4. Identify one other form of ownership that could be appropriate for
your business other than a proprietorship, partnership, or close cor-
poration. Locate a business that is organized using that ownership
form and study its operations.

ANALYSIS
1. Most new small businesses are formed as proprietorships and part-
nerships rather than corporations. However, new corporations have
a higher success rate than other types of business organizations.
What might be some reasons for that higher success rate?
2. Assume that your business is successful and expands during the next
five years. Identify specific situations that could occur during that five
year period in which it would be beneficial to reorganize the business
as a corporation. Collect and analyze the necessary legal documents.
Consider changing financial needs, management activities, business
operations, and your own personal needs.
3. Assume you are going to organize your juice bar as a corporation.
Use the information from the Data Collection section above to deter-
mine if your business should be a corporation, and if so, what type.
4. Collect and review the documents needed to register your corpora-
tion with the state and complete the formation of the corporation.

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