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Business Forms Evaluation and Recommendation - Essay Example

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The literature tells us that the easiest form of business to launch is the single proprietorship, where the only requirement is for the business to commence operations. The franchise can be a single proprietorship too, or one that is run by a corporation or partnership or LLC…
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Business Forms Evaluation and Recommendation
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Download file to see previous pages If Betty decides to take in someone else, then the form would be some kind of partnership, or a corporation, or a limited liability company or LLC, all of them valid legal business forms, and all of them placing some level of liability on the individual persons forming the business when it comes to being answerable to their customers and suppliers. Given that Betty does not seem to have that much experience with running a coffee business, then it seems to make sense, given the options available, to form the business as a franchise. Moreover, for reasons that are to be explored further in the other questions, the best form is one where Betty runs the business as a single proprietorship (Spadea, Lanard & Lignana, n.d.; Sanders and Lambert, 2007).
There are several options for “partners” or people to take in by Betty into the business. John, her husband, is one, ready to supply some capital for the business. Alice, the sister of Betty, is another. Erma, Betty's neighbor, is yet another, though she is not Christian. The religious inclination is one consideration in choosing someone if one is to make an assumption with regard to how religious inclination translates to business, moral and related values. Other issues, such as the level of commitment and energy that the different people options are ready to pour into the business, also matter. As well, domestic issues that can limit involvement and can constitute a conflict of interest are also pertinent considerations. None of the three options or “partners” are completely free of issues. John has the money, but will not commit any time or attention to the business. It helps though that he is the significant person in Betty's life, being the husband. That vital relationship can make up for any lack of commitment in terms of giving time to operate the business. Alice, meanwhile, while potentially committed and willing to give time and effort to operate the business with Betty, is constrained by a conflict of interest, the other party being family. ...Download file to see next pagesRead More
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