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For an architectural firm with 200 architects in 2 countries, a corporation with a divisional structure is best to segregate commands between countries under one CEO. For a young architect without capital, a partnership is ideal to generate more initial capital and contacts to help the business grow and potentially transition to a corporation later.

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Kayleen Chua
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36 views1 page

PP

For an architectural firm with 200 architects in 2 countries, a corporation with a divisional structure is best to segregate commands between countries under one CEO. For a young architect without capital, a partnership is ideal to generate more initial capital and contacts to help the business grow and potentially transition to a corporation later.

Uploaded by

Kayleen Chua
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1.

For an architectural firm employing 200 architects in 2 countries which form of


organization is best and why?
For an architectural firm that has another business branch abroad, it is best to be a corporation
that has a divisional (geographical) internal organization. This form of organization can
segregate the chain of commands in between countries while having one main line of
command from the CEO. The form of organization is ideally short unlike the flat organization
because handling 2 firms in 2 different geography is hard but when you’re also handling 200
architects including other employees, this can create a disorganized system and predictably
may cause indecisiveness among the lengthy bottom organization. In addition, if so many
people have a say on the command, it will be harder to remain on the same course of mission
and vision as the parent company; because minor decisions that are not made by the CEO can
become major problems.

2.If you are a young architect looking to start your own firm but don’t have enough
capital on your own which form of organization is best and why?
Partnership is ideal if you are a young architect wanting to start an architectural firm.
Partnership can generate more initial capital in order to start the business and run it. As a
young architect, you’re still in the process of collecting contacts and revenue, so being a sole
proprietor will be harder. However, if you have more people invested in making the business
grow, then there’s a bigger chance of having a higher life expectancy for the company. If the
company becomes successful, then you can renew the company into a corporation, just be
informed with the new set of legal instructions and processes.

3. Which form of organization is the easiest to set-up and why?


The easiest to set -up is sole proprietorship because there are lesser instructions you need to
accomplish in order to register the firm, including payment of taxes and forms of agreements.
There are no other commands that need to be put to account just your own. Thus, decision
making will be faster.

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