Factors Affecting Choice of Organisation

Factors influencing the choice of organisation:

• Capital - The amount of capital invested will determine what type of business the owner will open
• Projected Sales/Profit - The amount of profit that the owner is expected to make will determine the type of business they can open
• The amount of control the owner would like to have
• Set up process - Sole traders are easier to set up than limited companies
• Certain types of business enjoy government support such as tax holidays and subsidies.