One of your business clients has owned and operated his own business as a sole proprietor for over 30 years. He now wants to do

Question

3 years ago

12

One of your business clients has owned and operated his own business as a sole proprietor for over 30 years. He now wants to do

some retirement/succession planning. On the issue of the legal structure/ownership of his business, the best advice for him would be to:

Business

1 answer:

MrRa [10] · Answer 1 · 2022-01-21T18:28:32+03:00

Answer:

Incorporating the business and selling the shares to investors to take over as successors

Explanation:

Business incorporation is the legal process through which a business is formed.This allows an incorporated business to sell shares or stocks to interested investors , giving them the power of ownership in proportion to the volume of shares held , and the liability limited to the investment in the business.

It has the advantage over other methods of succession planning in active involvement in the business , limited liability and easier procedures.