Types of Businesses (Wk 2 Individual Assignment)
Types of Businesses
Name
Business Law 531
Date
Professor
Having a business mindset, taking risks, having patience and a good amount of financial means is just the start to starting up a business. Becoming an entrepreneur of any sort is not as easy as most people would think. An important decision an entrepreneur makes is deciding the type of business to create or go into. The business types that will be explained are sole proprietorship, partnership, limited liability partnership, Limited Liability Company, S corporation, franchise, and corporation. Each business type will be given a scenario as well as a justification as to why that type of business is preferred.
Business Type, Scenarios, & Justifications Sole Proprietorship is the simplest form of business (Cheeseman, 2010, p. 530). An owner and the business are considered one entity in a sole proprietorship. “Sole proprietorships are the most common form of business organization in the United States” (Cheeseman, 2010, 530). These are the smaller businesses which are and will slowly and surely become nonexistent due to the bigger corporations taking over (i.e., Wal-Mart, Target, Starbucks, and so on.). Newsstand is a neighborhood convenience store that is said to have the best fresh bread and pastries in the community. Dan is the sole proprietor, which means he is legally liable for everything within his store. Sole proprietorship is a great business form for Dan because it was easy for him to open that required minimal paperwork and it did not cost him greatly financially. The store could easily be sold to another if he wanted to sale it in the future. On top of that, he is his own boss. Dan makes all the decisions without consulting with a partner, shareholder, or investor. Sole proprietorship is an excellent choice for those who want to operate their business however they want and not have issues that involves others’ consent. Cheeseman states that “a partnership
Name
Business Law 531
Date
Professor
Having a business mindset, taking risks, having patience and a good amount of financial means is just the start to starting up a business. Becoming an entrepreneur of any sort is not as easy as most people would think. An important decision an entrepreneur makes is deciding the type of business to create or go into. The business types that will be explained are sole proprietorship, partnership, limited liability partnership, Limited Liability Company, S corporation, franchise, and corporation. Each business type will be given a scenario as well as a justification as to why that type of business is preferred.
Business Type, Scenarios, & Justifications Sole Proprietorship is the simplest form of business (Cheeseman, 2010, p. 530). An owner and the business are considered one entity in a sole proprietorship. “Sole proprietorships are the most common form of business organization in the United States” (Cheeseman, 2010, 530). These are the smaller businesses which are and will slowly and surely become nonexistent due to the bigger corporations taking over (i.e., Wal-Mart, Target, Starbucks, and so on.). Newsstand is a neighborhood convenience store that is said to have the best fresh bread and pastries in the community. Dan is the sole proprietor, which means he is legally liable for everything within his store. Sole proprietorship is a great business form for Dan because it was easy for him to open that required minimal paperwork and it did not cost him greatly financially. The store could easily be sold to another if he wanted to sale it in the future. On top of that, he is his own boss. Dan makes all the decisions without consulting with a partner, shareholder, or investor. Sole proprietorship is an excellent choice for those who want to operate their business however they want and not have issues that involves others’ consent. Cheeseman states that “a partnership
References: Cheeseman, H.R. (2010). Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues (7th ed.). Retrieved from The University of Phoenix eBook Collection database.