PLEASE ANSWER THE 2 QUESTIONS AT THE BOTTOM Discussion Board Forum 3 Case Study

Question

PLEASE ANSWER THE 2 QUESTIONS AT THE BOTTOM

Discussion Board Forum 3 Case Study

Starting and Naming a Business

Shania Jackson is a mature Christian thinking of opening a Christian coffeehouse near Denver, Colorado. Her husband, Marvin, is open to making a contribution of capital to the business, but he has no interest in participating in its operation or management.

Shania’s sister, Kelsey, is a new Christian who has told Shania that she’s been looking for an excuse to get out of the house and would love to be a part of the business. Kelsey’s husband, a non-Christian, opposes his wife’s involvement and has told her that he expects her to remain a stay-at-home mom to their two children, ages 13 and 15.

Shania’s neighbor, Carlos, is a non-Christian who has also expressed an interest in participating in the business as a way to earn extra income. Carlos thinks the “Christian thing” has potential with all the big churches in the area, including a Mormon temple and a large Kingdom Hall of Jehovah’s Witnesses.

In researching the coffee business, Shania comes across a few franchise opportunities, some of which would require her to adopt the franchise name and trade dress, as well as others that would only require her to move into a turn-key facility and agree to purchase a certain volume of product every month for a period of at least 10 years. Both types of franchises offer training for her and any staff she might hire.

Shania has considered organizing her business as a sole proprietorship, a partnership of some sort, a corporation of some sort, an LLC, or even a joint venture. She is thinking of calling the business “The Gathering Place.”

1.Perform a corporate name search at this website to determine if the name Shania is considering is available for use in the State of Colorado. Also assess whether the name is available as a trademark. Even if the name is available, advise Shania on whether it is a good choice. Explain why or why not.

2.Advise Shania on which of the interested persons she should include in her business, why, and in what role(s). If she chooses not to take in a particular party, what reasons should she give each person, if any? Your analysis must include biblical perspectives, such as biblical considerations of marriage and of business relationships with non-believers.

Explanation / Answer

1. After research it seems that the name “The Gathering Place” is a popular name. There were more than a few companies in which include the sequence of words in their name or title like it has been labeled under the parent company like Starbucks or Dunkin Donuts. Although the web search showed that the name was available, I would recommend coming up with a new name for Shania’s coffee shop. As she may not be aware of any of the companies working to trademark the name currently and down the line it could potentially cause problems for her financially and legally. I do like the concept of the name, but I do think she should find an alternate. Shania should find a name in which is completely different from what other businesses are using. She should trademark her name so that it also belongs to her and then possibly franchise in the future.

2. On the topic, the interested person Shania include in her business, she would have to considered few facts as Shania has gained support from her husband for startup funds but he will not be participating in the day to day business. Shania’s neighbor, Carlos, is a non-Christian who has also expressed an interest in participating in the business as a way to earn extra income therefore he is only interested in making a financial contribution but have no management interests. Shania’s sister Kelsey has expressed interest in working at the future coffee shop although her husband, a non-Christian, is opposed to it and feels as though she should continue staying at home with the kids. However it looks like that his only concern is Kelsey being at home with the kids and not the fact that this will be a Christian business. Therefore Shania should offer her sister the opportunity to work part time at the coffee shop helping her to feel a sense of independence. Kelsey’s children are 13 and 15 and both in school during the day. Taking on a part time job during the day will help Kelsey earn supplemental income for her family while still being able to at home with her children as her husband wishes. Shania’s husband Marvin and her neighbor, Carlos, both are interested in making a financial contribution but have no management interests and her sister, Kelsey, is only looking for employment a limited partnership seems the most appropriate business form to consider. In addition there are several advantages to a limited liability partnership that would make this business form ideal for Shania’s business goals.

Shania would like to have a Christian coffee house which in a sole proprietorship she would be able to do. The other business forms would be good options but she could possibly hurt herself in the future. For example, if Shania were to come up with a new item and it takes off then she would be able to have the full credit for this rather than share if she were to have some sort of partnership. Ultimately, this would be the best option for Shania and her new business

Opening up as an independent coffee shop Shania won’t have to operate or abide by someone else directions, but be able to choose her own path for her business. In due course if Shania wants her coffee shop to be created under her vision she will operate as an independent business, in which I recommend. Once she has her company up and running she can then decide to make it into a franchise in efforts to expand and boost sales and revenue.

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