Busness
Legal, social, and economics of Business
BUSN105-1302B-266 Unit 1. Individual project
Terry McBride
JUNE 16,2013
The scenario in question gives us the portfolio of a person that likes to do things around the home and has come up with an idea that might benefit his/her home and perhaps other homes globally. Another version of this idea already exists on the market but the person believes his invention might further simplify and make the “appliance” more user friendly and safer. This person does not have available funds for the project and would therefore have to look to an outsider to complete the task at hand. The inventor has researched the market of the other “appliance” and found that it has an annual growth of 2%. He believes this invention could increase that growth because he thinks this invention might be used in many other “appliances” making the product quite versatile and therefore appealing to a wide range of markets. For the person to be able to make a wise decision about how to make his project a reality we look at three types of business, the sole proprietorship, general partnership and corporation, while considering the advantages and disadvantages. After looking thoroughly at these types of businesses, we try to make an informed decision in which type to recommend for the project, keeping in mind all the aspects of the persons “limitations”. These three types of businesses all have their advantages and disadvantages and based on those we determine that general partnership would be the smartest way to proceed, as the persons “limitations” minimize the chances of the two other options succeeding.
Let us start by looking at closely at the three business types in question regarding the scenario.
Sole proprietorship, a business owned and operated by one person.
Advantages:
He would be in full control, and accountable to no one but himself. In the case listed this could be good because he could manage his time between his
BUSN105-1302B-266 Unit 1. Individual project
Terry McBride
JUNE 16,2013
The scenario in question gives us the portfolio of a person that likes to do things around the home and has come up with an idea that might benefit his/her home and perhaps other homes globally. Another version of this idea already exists on the market but the person believes his invention might further simplify and make the “appliance” more user friendly and safer. This person does not have available funds for the project and would therefore have to look to an outsider to complete the task at hand. The inventor has researched the market of the other “appliance” and found that it has an annual growth of 2%. He believes this invention could increase that growth because he thinks this invention might be used in many other “appliances” making the product quite versatile and therefore appealing to a wide range of markets. For the person to be able to make a wise decision about how to make his project a reality we look at three types of business, the sole proprietorship, general partnership and corporation, while considering the advantages and disadvantages. After looking thoroughly at these types of businesses, we try to make an informed decision in which type to recommend for the project, keeping in mind all the aspects of the persons “limitations”. These three types of businesses all have their advantages and disadvantages and based on those we determine that general partnership would be the smartest way to proceed, as the persons “limitations” minimize the chances of the two other options succeeding.
Let us start by looking at closely at the three business types in question regarding the scenario.
Sole proprietorship, a business owned and operated by one person.
Advantages:
He would be in full control, and accountable to no one but himself. In the case listed this could be good because he could manage his time between his
References: Bellis,M(n.d.). Invention assessment: What is the purpose of marketability evaluation? Retrieved from: http://inventors.about.com/od/marketassessment/a/evaluation.htm , (August 23, 2011) Ebert, R. J., & Griffin, R. W. (2011). Business essentials (8th ed.) )[Online version]. Retrieved from: AIU Online Virtual Campus. Introduction to business: BUS105-1103B-275 website. Quick MBA(n.d.). Law and business: The Corporation. Retrieved from: www.quickmba.com/law/partnership/general/, (August 23,2011) Quick MBA(n.d.). Law and business: The General partnership. Retrieved from: www.quickmba.com/law/partnership/general/, (August 23,2011)