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BUS 307 Final Project.docx - FINAL PROJECT 1 BUS 307 Final...

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FINAL PROJECT1BUS 307 Final ProjectCory DouglassSouthern New Hampshire University
FINAL PROJECT2Bus 307 Final ProjectCase Study OneFred and Sally, I wanted to follow up on our conversation about” Fred’s cough syrup,” and the new business you wish to start. To start off I would like to summarize our last conversation to make sure that I was clear on what you wanted to do. You have decided that you want to bring your “miracle” cough syrup market and your son wishes to take it another step by trying to take it nationally. Some of the questions that were discussed were, the main types of business entities, product liability, agency relationship, agency relationships, manufacturing on the farm and rights, personal property, liability issue, estate planning, transfer ownership.These questions are great questions and I will cover each one and make sure you know your options as well as why I think certain options are important. Let’s start from the top, business entity types. The three main types are Sole Proprietorship, Partnership and Corporation. A “sole proprietorship” allows an owner to start a business on their own and have sole control over it, the creation of this business type is simply to start with very few legal formalities. The only issue with sole proprietorship is that you will be personally held accountable for all loses and funding is limited to any loans or personal funds that the owner may obtain. This may cause unadded stress during the initial startup due to startup costs will be more than the initial profits.Now as we consider a “partnership” this retains the advantage of the sole proprietorship but on the other hand it removes the funding drawback. This is a voluntary association between two or more people that have decided to go in to business together. Much like the sole proprietorship the start of this type of business entity is easy to get started. To start a partnership, you don’t need any formal or written agreements between partners and the business isn’t
FINAL PROJECT3considered a sperate entity. What this means is that the income from the business is individually taxed as one single income and all losses can be deducted from the taxable income. But when it comes to the business debt partners are personally liable.Not all business is one size fit all, there are several different types of partnerships. The different types of partnerships, the three I would suggest if Fred and Sam decide to go into business together in the future are:General Partnership– This is where the partners divide everything equally.Limited Partnership– This type of partnership has one GP and one limited partner.Limited Liability Partnership– In a LLP each partner is not responsible for the other partners misconduct or negligence.

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Term
Fall
Professor
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Tags
Corporation, Types of business entity

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