MAN 1030 Introduction to Business
February 2, 2013
Sonic is a large chain of fast food restaurants with over 3,200 drive-ins all over the country and in Mexico. (http://sonicboomsc.com/sonichistory.html) I would have never thought that it all began as a sole proprietorship, a business owned and managed by one person. There is no way that Sonic would have grown as large as it has today if it had stayed that way. Today Sonic is now a successful corporation. Sonic has been through all of the basic forms of business ownership. It began as a sole proprietorship, then it became a partnership, later on it added franchises, and today it is a corporation. There are many benefits as well as disadvantages to all of the forms of business. The benefit of Sonic being a sole proprietorship would be that it’s easy to start up, the owner would be his own boss, and tax benefits. Some disadvantages for Sonic being a sole proprietorship would be the limited life span, the limited financial resources, and the limited growth of the business. The benefits of Sonic as a partnership are the shared management, no special taxes, longer survival, and more financial resources. Some disadvantages of are differences among the partners, sharing the profits, and difficulty getting out of the business. The benefits of Sonic as a corporation is the capability to raise more money for investment, the separation of ownership form management, and the ease of attracting talented employees. The disadvantages of Sonic as a corporation are the initial cost, the extensive paperwork, and the double taxation. (Nickels, W., McHugh, J. &McHugh, S. Understanding Business (10 edition) pp. 117-125 There are many major franchises all over the world that are very successful. Some of the top 100 franchises are Subway, McDonald’s, KFC, Wendy’s, and many more. (http://www.franchisedirect.com/top100globalfranchises/rankings/) In my opinion I believe that hard...