Factors that determine the form of business units
Some of the factors that determine the form of business units are;
- The amount of capital available.
- The number of persons involved in the formation.
- Who owns the business unit – government or private individuals.
- The nature of the business the proposed business unit is to carry out.
- The sources of capital of the business unit.
- Whether the business unit is formed to make profit or to render essential services or to promote the business interest of the owners.
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