Arcadia Sports Case Study

When opening a business there are many choices a person can take to protect assets and liabilities some advantages and disadvantages they are listed as followed:
• A Solo proprietorship this is the most basic type of business to establish, and least amount of paper work involved to set up. o Advantages the sole proprietorship has complete control and decision-making over the business. The sole proprietorship can take discretion of the sale or transfer of his/her own terms. No corporate tax payment. Minimal legal costs to from there are few formal business requirements o Disadvantages are Because of the basic type of business, it is hard to keep your personal and business accounts separate.
• A limited liability company (LLC) it combines the legal structure that provides the limited liability features of a
Which would protect Jeb and Josh from any debt that Arcadia Sport incurs and their personal assets are exempt. Furthermore, limited means just that limited this might shield them from wrongful acts. I would assume that the company has insurance to cover the Jane medical expense that is going to accrue for her injures. This also falls under how this company and their business are set up, did they have a wavier that everybody signed for any personal injuries that might accrue during their excursion. If not, Jeb and Josh filled under a partnership business using the Limited partnership type, both Jeb and Josh would share full liability for Jane’s injury regardless how much each invested in the business. Furthermore, the personal assets of all the partners can be used to satisfy the partnership’s debt. Based on the fact presented, Jeb’s assets and/or profits of Arcadia Sports are safe from seizure by creditors for his personal