In the thought of Sonic remaining a sole proprietorship I do not think that it would have grown as big as it is today because if there was not a chain of Sonic’s there would be only the one that Troy Smith started in 1954(Sonic Video Case: Sonic is Booming.)Troy Smith started Sonic as a sole proprietorship and gradually evolved to a partnership, then to a corporation, and finally to franchisor. If he had not have took the step that he did to start as a sole proprietorship and slowly evolved it to a partnership and then to a corporation, and finally to franchisor, it would not have grown to be big as it is. It was not only Troy Smith that made this happen he had partners and family that was involved in this as well. What we call Sonic today started as Top Hat drive-in, in Shawnee, Oklahoma.
In the beginning when Troy Smith started his restaurant it was a sole proprietorship he had some advantages when he run the restaurant this way, because he sole proprietorship is the easiest to open, he could file his taxes by completing a single form, and there are no state charted set up fees for corporate registration and payroll set up. He was taxed on his income, rather than profits or other variables, on his taxes. A disadvantage would have been if he had passed away while he was a sole proprietorship, the business could have shut down, unless someone in the family wanted to continue to run it. When it became a partnership, they had more access to resources such as financial investment, knowledge, and management. A disadvantage would be that if someone died the business ends or comes involved in legal entanglement. When it became a corporation it allowed shareholders to have voting rights and dividends by providing them with common stock. If someone passes away in a corporation the company goes on unlike in the other two forms of ownership there business could shut down, but in the corporation it does not (Learning Activity 2.)
I think that what makes Sonic and other...
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