Erick and Jacob are college graduates who want to open an accounting firm. However, Erick has a fulltime position that he plans to continue but still wants to be a part of this business venture. Which form of business ownership would you recommend to Erick and Jacob?

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1. Erick and Jacob are college graduates who want to open an accounting firm. However, Erick has a fulltime position that he plans to continue but still wants to be a part of this business venture. Which form of business ownership would you recommend to Erick and Jacob?

Limited partnership. A limited partnership permits a partner to invest in a business but have limited liability and responsibility. General partnership agreements are designed to combine capital, experience, and the abilities of two or more people. An open corporation sells millions of shares of stock to many stockholders. Consolidation would be the joining of two or more companies to form a new company.
Lease equipment. There are many ways that businesses can control their operating expenses. One of these is to lease equipment rather than buy it. Businesses often are able to lease equipment and pay for it on a monthly basis over a period of time, which saves paying the purchase price in one lump sum. Also, leased equipment can be returned at the end of the lease agreement and replaced with new equipment, which often saves the business repair expenses. Sometimes, businesses need specialized equipment for a certain project, and it is more economical to lease it for a short time than to buy equipment that will not be needed again. Buying in small quantities is often more costly than buying in large quantities. Obtaining credit does not control expenses because a business must repay the loan with interest. Organizing inventory space does not necessarily help to control operating expenses.
Necessary skills and affordability. A business owner considers many factors when determining if s/he should hire an employee. An important consideration is the nature of the work that the owner needs to have done. For example, if the owner needs someone to pay bills and mail invoices, s/he would likely hire a person who has bookkeeping skills. The owner must also consider if s/he can afford to pay a full time or a part-time employee. Hiring a full time employee is more costly because the person works longer hours, which increases payroll expenses. Benefits are usually not offered to part-time employees, which makes part-time employees less costly to the business. Training needs are important but depend on the skills the owner needs for the business. Property taxes, the screening process, and attitude are not factors that small-business owners consider when deciding to hire additional employees.
Making a brand promise. A brand promise is a business's agreement, spoken or unspoken, with customers that it will consistently meet their expectations and deliver on its brand characteristics and values. In the example, the brand promise is to provide all customers with quick, courteous service. Developing a campaign platform, stating industry policies, and establishing product position are not activities in which a business is making a pledge or promise to customers.

Erick and Jacob are college graduates who want to open an accounting firm. However, Erick has a fulltime position that he plans to continue but still wants to be a part of this business venture. Which form of business ownership would you recommend to Erick and Jacob?

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Erick and Jacob are college graduates who want to open an accounting firm. However, Erick has a fulltime position that he plans to continue but still wants to be a part of this business venture. Which form of business ownership would you recommend to Erick and Jacob?

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know? Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com