Ownership Structure
Proprietorship
Partnership
firm
Company
Co-operative
society
Selection of an appropriate form
of ownership structure
Nature of
business- if business require pooling of capital and skill are generally run as
partnership
Areas of
operation- local operation require proprietorship. National and international
businesses require company ownership structure.
Degree of
control – direct control over business operation is required suitable ownership
may be proprietorship.
Capital
requirement- if capital requirement is more so it is better to choose
partnership firm.
Duration
of business – if business have a definite period of time it suitable for
proprietorship or partnership.
Government
regulation- if the owner not like much more government involvement so he can
choose partnership or proprietorship.
Capital
Entrepreneurship capital is defined as "a
region's endowment with factors conducive to the creation of new
businesses" and it exerts a positive impact on the region's economic
output. The production function model is developed to test this positive impact
and the model is estimated for various regions in Germany. Data were acquired
from a startup panel developed by the Centre for European Economic Research in
Mannheim, Germany, and is based on data provided biannually from the largest
German credit rating agency, Creditreform.
Evidence
suggests that various measures of entrepreneurship capital contribute to
output. Regions with a higher level of entrepreneurship capital show higher
levels of output and productivity, while those lacking entrepreneurship capital
have a tendency to generate lower levels of output and productivity. The impact
of entrepreneurship capital is stronger than that of knowledge capital.Evidence
indicates that entrepreneurial capital plays a very important role in the
production function model presented.
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