Bus 206 Final part 3.odt - Teri Robinson Bus 206 Final...

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Teri Robinson Bus 206Final Project1Longtime friends Jeb ad Josh have decided to go into business together. They have chosen to open asporting goods store named Arcadia Sports. Looking at the main types of business entities and theiradvantages and disadvantages, I will recommend a specific business entity for Arcadia Sports, andshare my reason for choosing this type.1.A sole proprietorship is defined as a business organization in which you, as the sole proprietor,are in sole control of the management and the profits.(Kubasek et. al., 2017). Some of the advantagesare that this business requires very few legal formalities. A Sole proprietor has complete control of themanagement of the organization, with the freedom to hire employees, determine business hours, andexpand or change the nature of the business. The prop sole proprietor keeps all the profits from thebusiness. These profits are taxed as the personal income of the business. These profits are taxed as thepersonal income of the sole proprietor. Some disadvantages are that you are personally liable for anylosses or obligations associated with a business. Funding is limited to personal funds and loans. Thesole proprietorship is not considered a separate legal entity, you, as the owner and sole proprietor, canbe personally sued. The biggest disadvantage of a sole proprietorship is that there is no separationbetween business assets and personal assets. This means that if anyone sues the business for anyreason, they can take away the business owner's cash, car, or even their home. This type often strugglein the initial stages because they have large start-up costs relative to the profits they make.The next business type is a partnership. Partnership is defined as a voluntary association betweentwo or more persons who co-own a business for profit.(Kubasek , 2017)The partners equally divide theprofits and management responsibilities and share unlimited personal liability for the partnership’sdebts. The advantages of this business is it can be created easy. Income of business is personal income.

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Term
Spring
Professor
ROSE
Tags
Business, Business Law, Corporation, Teri Robinson

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