Which factor is NOT considered when selecting a business's organizational form?

Study for the LEGL 2700 Hackleman 3 Exam with comprehensive questions, each accompanied by detailed explanations and hints. Ace your exam preparation today!

When selecting a business's organizational form, factors such as cost of creation, taxation, and managerial control of decision-making are crucial considerations. The cost of creation involves understanding the setup expenses and the legal complexities tied to forming different types of business entities. Taxation affects how profits are taxed, which can vary significantly between structures like sole proprietorships, partnerships, S corporations, and corporations. Managerial control refers to how much decision-making authority the owners want and is also influenced by the business structure—some forms allow for more centralized control than others.

In contrast, market share does not directly influence the choice of organizational form. While a business's goal may include increasing market share, this is more related to business strategy and market positioning rather than the fundamental legal structure of the organization. Thus, when determining how to establish the business legally, factors like cost, taxation, and managerial control take precedence over considerations of market share.

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