Chaper 1: Which to Choose: Family or Business

In Chapter 1, "Choosing between family and business," the authors will first describe how the home system and the business system have different norms, beliefs, and values. Then they explained why the family still chooses to do business, although it may cause friction in the house. Some companies choose to make decisions based on their families and other companies choose to make decisions based on their business. The authors believe that there should be a sound balance between the two.

Question 1 has three types of business structure: private business owners, partnerships, and companies. Choosing the right kind of business structure is one of the most important options to be done when starting a business. This decision affects not only its responsibilities but also the ability to raise, manage and determine funds. Since five people are interested in starting a new business, they must choose by comparison whether the partnership or company is best for their purpose.

Having your own business is an important part of great economic success for the capitalist society. Since there are lots of business types to choose, one of the first decisions you have to do is the type of business you want to open. There are many ways to investigate your business structure. In this article I will define three most popular types of business. These kinds of business are (1) Individual business owner, (2) company, and (3) limited liability company. Individual ownership is not an independent organization and there is no formal organization requirement. Individuals have just started business. Most of the individual business owners are small and medium enterprises, and initially there was little demand for commercial capital. Usually, individuals provide funds. In order to raise funds, individual business owners have personal economic risks. The income of a company is the income of a sole proprietor and is reported in the personal income tax return.

A sole proprietor, also called a sole proprietor or individual business owner, is a non-corporate enterprise with a single owner who pays personal income tax on the income derived from the company. Individual employers are popular among individual dealers, consultants or owners of small businesses, as private business owners are the most direct business establishment or demolition due to poor government regulation. There is no separation between a single ownership and the entity and its owner. Therefore, it is different from a company or a limited partnership union in that a separate corporation is not created. Therefore, the owner of a single ownership right can not be exempted from the entity's responsibility. For example, the debt of a sole proprietor is also the owner's debt. However, all profits will flow directly to the owner of the sole proprietor