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Kelly and Karla were roommates at Lynn University and
graduated last May. While on a post-graduation celebration trip to Costa Rica,
the two women began exploring the idea of opening a restaurant on South Beach
in Miami, Florida. Neither has any previous experience in starting or operating
a restaurant, but both have extensive connections in the Miami-Dade area
because of the many friends they made while attending Lynn. They intend to
attract health-minded, college-age students to their new restaurant, The SoBe
Health Hut. Kelly and Karla agree that each will invest equally in terms of
time and money. However, in addition to these equal contributions, another
$100,000 is essential for the restaurant to succeed.
1) Explain the key elements
of – and the differences between -- a sole proprietorship, a general
partnership, a limited liability partnership, and a corporation. (65%)..Adress
advantages and disadvantages of each.
In this question, explain meaning, advantages and
disadvantages of each
2) What type of the above
four business entities is best suited for The SoBe Health Hut and why? In your
answer, explain who will manage the store and what personal liabilities will
Kelly and Karla face and why? (35%)
In this question; Indicate what type…and why
Who manage the story ….and personal liabilities?
And why.
ALL elements of each question must be present
You shall be graded on your complete and proper
explanations, research and language usage, all as noted below. The report must
be no more than 1,000 words and is to be submitted in typed, double-spaced
form. A report that does not follow this form will be deducted per the grading
rubric. This project is 15% of your overall grade
Use these references
https://www.entrepreneur.com/article/200516
https://lynn.instructure.com/courses/11722/files/1754701/download?wrap=1
Business Entities
Questions
1
Sole proprietorship
It
is a form of business entity established and operated by one person. This form
of business entity cannot be treated as a legal entity. The business unit owner
solely enjoys all the profit realized from the enterprise and bore all the
inherent risk alone (Spadaccini, 2009). A
sole proprietorship can be operated under the owner’s name. The name of the
business serves as a trademark name but does not give the business a legal
entity separate from its owner. The sole proprietor must only register his or
her name and obtain an operating license to get started. This form of business
his easy to begin because few legal formalities and a small amount of capital
is required to set up a new business.
Advantages
Sole proprietorship form
of business is easy to set up because little capital is required to begin
operating. Besides, only legal formalities such as operating license and
registrations of appropriator's name are required to get the enterprise
started.
The business owner is...
