S1: Business Organizations Charmaine, Delia, and Mary met while working for FSPC
ID: 459738 • Letter: S
Question
S1: Business Organizations
Charmaine, Delia, and Mary met while working for FSPC in Atlanta, Georgia. Charmaine was attending college to earn a degree in management. Delia was attending culinary school to become a chef, and Mary was a recent graduate in sales and marketing. The three ladies decided to open their own sandwich restaurant on wheels, also known as a food truck. They planned to start small with one truck but had big dreams to own a whole fleet of trucks that served a variety of foods.
Charmaine took a business law class and remembers there are several forms for organizing businesses. The ladies have come to you for advice about the various types of businesses.
Analyze three types of businesses, including advantages and disadvantages related to the business the ladies plan to operate.
Defend selection of one of the three types of business form for the new business, including the requirements for starting that form of business in your state.
Explanation / Answer
1- The first way is to take the loan from the bank. Bank will provide the financial support to open the restaurant. The advantages are this process is that fund will arrange easily but if the business become failure than the owner will become bankrupt.
2- The second way is to search for partner who can finance the project. The advantage in this method is that the risk will be reduced. The disadvantages is that if the business become successful than you have to share the profit.
3- The third and the last method is that start the business by own money. The advantages are that owner will be the whole sole profit earned but the risk is very high.
Among all the above the second one is best. The best way is to get the partner who can finance your project and share the profit. So the risk will be reducing.
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