Summary - Why Business Fails

Ownership is an important factor than could be responsible for the success or failure of business. When an owner starts a new business, what he or she should do is investigate their products or services as detailed as possible so that they may design an optimal structure for future development. To take New Zealand as an example, basically it has several ownerships that could be chosen by entrepreneurs. Sole trade, partnership and private company are three most common types of business New Zealanders choose to operate. These three have considerable difference on the most aspects such as benefit, number of members, liability, etc. especially on taxation. That the difference of taxation causing the different business cost may influence the extent to success or otherwise of business has been mentioned above, so the liability of these three will be underlined here. In New Zealand, if a sole trader's business fails, he or she will be personally liable for all debts. …