Types of ownership Essay Example for Free

Types of ownership Essay My business will be a sole proprietorship because I will be in charge of the business but I would need to employ people to help me run the business. As I decide what happens to the profits I would pay for wages and then spend the rest on repairs and debts until I had paid off the necessary debts and loans. I have chosen a sole proprietorship because I get to be my own boss and if I am deciding what happens to the profit I know it will be spent in connection with the business . The disadvantages wont affect me because I have employed people t work for me therefore I wont have to work long hours . All skateparks around the uk are unincorporated because people ride skateparks at their own risk so if they injure themselves it is there own fault. The only way I could get prosecuted is if they are injured due to bad maintenance of the park i. e. somebody hurting themselves on a nail sticking out of a ramp. Cash flow is important because if you have a poor cash flow your business goes bankrupt. A cash flow forecast enables you to see how much money is coming into the business and how much is coming in and how much money is going out. If to much money is going out and not enough is coming in you can use the spreadsheet to see what needs to be changed. If you have a poor cash flow there is a lack of working capital. This can result in a lot of other problems like staff not getting paid on time and if loans arent repaid firms may take legal action against this and reposes things making the business unable to sell products. I would not have good facilities for anybody under the age of 12 with no great understanding of the sports or ability to do the sport