Starting and Naming a Business (Administrative Law and Government Regulation) - Research Paper Example

Starting and Naming a Business Starting and Naming a Business The following are disadvantages and advantages of operating a franchise. Franchises provide individuals an opportunity to go into business on his or her own, even if the person has no capital or business experience. As compared to other forms of starting businesses, franchises offer a head start to the owner of business through offering support on the foundation of the business requirements. Franchises enable individuals to obtain supplementary assistance and training.

Several franchises provide extended assistance and training with business set-up, staff training, lease negotiation, site selection, advertising, and collective purchasing power. Through franchising, the business will be associated with well developed brands and reputation. Disadvantages; franchisees usually have to operate according to the operations rules of the franchisor. Franchisees are required to pay ongoing fees to the franchisor. There is less control especially while selling the business, since there are procedures to follow (Pride, Hughes & Kapoor, 2011).

The following are the disadvantages and advantages of a sole proprietorship. Advantages; it is easy and uncomplicated to start this form of business. There are few formal commerce requirements. There is direct motivation since the entrepreneur assumes all risks and earns all the profit. There is better control since the entrepreneur is the sole decision maker. There are minimal legal expenses for starting sole proprietorship. There are no company tax payments. Disadvantages; the entrepreneur make all business decisions and assumes all responsibilities of the business, including business liabilities in case of insolvency.

Entrepreneurs may experience difficulties while raising cash needed to start and sustain a business (Pride, Hughes & Kapoor, 2011). According to Pride, Hughes & Kapoor (2011), the following are the disadvantages and advantages of partnerships. Advantages; there are no prescribed requirements for the formation of a partnership. There are no prescribed requirements for the business operations. Therefore, it is inexpensive to operate partnerships. Partners are taxed individually, and this may result to lower taxation.

Disadvantages; partnership is not a separate lawful entity implying that partners are, in their individual capacity, accountable for the business debts. The death of a partner may result to termination of the partnership. There may be difficulties in the decision making process.The following are the disadvantages and advantages of a corporation. Advantages; a corporation is a separate lawful entity and is thus not affected by bereavement of a shareholder. There is limited monetary liability of shareholders.

There is uncomplicated transfer of possession. There is greater monetary capability. Disadvantages; Special and double taxation; corporations pay constant tax rate on corporate earnings, whereas shareholders pay withholding tax on the dividends. It is complex and expensive to create and dissolve a corporation. There are state regulation and public revelation requirements (Pride, Hughes & Kapoor, 2011). Among these forms of businesses, I would recommend Betty to adopt a franchise. Betty has identified few franchise opportunities of the coffee business in Belmont.

I would recommend her to consider those franchisors that are requiring her to espouse the franchise name and business dress. The major reason of recommending a franchise is that most franchisors offer to train employees and provide assistance to entrepreneurs on the basis of business requirements. The business will be associated with well developed brands and reputation. Betty may consider doing business with her husband John and Erma. The major role of her husband would be to make a capital contribution to the business.

Betty should treat Erma as a business partner, and their relations will principally be based on the operations of the business. However, the association of Betty and Erma provides an opportunity for Betty to change Erma from a non-Christian to a Christian. Betty will explain to Alice that since her husband has refused her involvement in business, it would be wise for Alice to stay at home and take care of the family. This would protect family breakdown due to spouses’ disagreements.The business name, Gathering Place, which Betty is considering to use, is available for use within North Carolina.

However, there are other businesses operating under almost the same name. Therefore, this name may not be a suitable name selection for trade marking purposes. Trade marking using this name may create confusion among customers and suppliers in differentiating the business with others. There will be no problems in using this name for legitimate business purposes since there is no other business registered using the same name (Reynolds & Curtin, 2008).ReferencesPride, W.M., Hughes, R.J. & Kapoor, J.R. (2011). Business. New York: Cengage Learning.

Reynolds, P.D. & Curtin, R.T. (2008). Business Creation in the United States. Hanover: Now Publishers.