Important paper

Running Head: PROPOSAL 1

Proposal

Kelcee Wassell

BUS 311

Professor Pao

March 13, 2017

Introduction

The form of the business organization is crucial in determining the capability of a given business in offering its products effectively and efficiently. This observation is derived from the impact of the form of business in influencing the operating capacity (Epstein, Freer, Roberts, & Shepherd, 2015). This is due to the risks involved and the capital expenditure required at different stages of a business entity. Equally, its form of business can affect the capability of meeting demanding financial obligations. The financial strength of the different forms of business differs due to the extent of sourcing the capital to finance its operations (Spadaccini, 2010). Accordingly, the scenario facing the Acme Fireworks demands for the review of its current form of business organization. The appropriate form of entity to form has been evaluated by considering the financial strength and risk sharing under the new business activities. In undertaking the research study, the researcher has adopted the thesis statement that a partnership is the appropriate form of entity to form due to the enhanced opportunity it gives the proprietor to undertake the business effectively.

Outline

1. Types of business organizations: This area will identify the various forms of entities an entrepreneur can consider forming. The identification of the forms of business organizations will be detailed by reflecting on the unique characteristic of each entity.

2. Advantage and disadvantage of each form of entity: This area will reflect of the various advantages and disadvantages that a prospective investor should consider in determining the form of business to select. The discussion on pros and cons on each form of entity will be segmented for each type. Similarly, a comparative reflection against each form of entity against the rest will be evaluated in the discussion.

3. Legal consideration: This area will reflect on the laws covering the contracts undertaken by the business organizations. This discussion will entail determining if the business contracts are covered by the uniform commercial code or the common laws. The rationale on the argument of the researcher on the laws covering the commercial contracts will be backed by legal citation and case facts.

4. Personal liability: The personal liability area will explore on the potential responsibilities the business organization may due to the injuries afflicted by the products it has supplied to the customer. Similarly, the potential contingency strategies the business organization can employ to cushion the potential liabilities will be evaluated in the discussion.

5. Types of employment relationship: This will reflect on the different forms of employment a business organization can engage with the workers involved in the production of the products it sells. Additionally, the advantages and disadvantages of the various forms of employment in relation to the impact it has on the employer and the employees will be discussed.

6. Recommendation: The recommendation area will reflect on the reasons the proprietor should change from the current sole proprietorship form of business entity. Similarly, the rational form of entity that’s should be considered by the entrepreneur will be recommended at this point. The recommendation will be supported using the new situation the entrepreneur is facing in meeting customers’ demand and employees’ financial obligations.

7. Conclusion and Summary: The conclusion and summary part will give a condensed reflection on the various areas discussed in the research paper. Additionally, the recommendation arrived from the analysis will be explained.

References

Baskind, E. O., & Roach, L. (2016). Commercial law. Oxford, United Kingdom: Oxford University.

Cassim, F. (2012). The law of business structures. Claremont: Boston.

Epstein, D., Freer, R., Roberts, M., & Shepherd, G. (2015). Business structures. St. Paul, MN : West Academic Publishing.

Spadaccini, M. (2010). Business structures. Irvine, CA : Entrepreneur Press.