Before selecting any form of business organisation, one must consider the following factors:
(i) Easy Formation: Its formation must not invole much logal formalities. It must consume less time.
(ii) liability of Owner: It can be limited or unlimited, Limited liability is more preffered from risk view point.
(iii) Continuity and Stability: This is essential as its enables the businessman to make long terms plans for his business.
(iv) Capital Adequancy: Business form must ensure raising of adequate amount of capitals at most reasonable cost.
(v) Flexbility of operations: Business mustbe flexible enough to adjust it self to changes taking place in its environment.
(vi)Relationship between ownership control and management : For eficient management, the controll and managementof firm must be the hands of the owners.
(vii) Lawful Business: Every business enterprise must undertake such business.
-Answered by Rohit Rajput On 05 October 2020:06:52:48 PM