Business Law-Business Entities

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Institution Affiliation

Business Law-Business Entities

The first possible business entity is sole proprietorship which is owned and ran by one person and owner is not legally distinct from the business entity (Jenkins, 2003). From the case study Jeb owned wind power which is a sole proprietorship and in that business he would enjoy advantages such as; fast decision making since there is consultation needed, secondly, as the owner of the business he enjoys all the profits realized from the business and few legal formalities are required to start up the business. These advantages applies in the scenario since Jeb would enjoy profit alone and make decisions faster. On the other side, the owner of the business bears the following disadvantages; all the losses incurred in the business entity are sole responsibility of the owner. Second, there is no a clear legal distinction between the business entity and the owner and the owner of the business cannot easily enjoy funding from investors due to unlimited liabilities. In this scenario, Jeb will suffer losses alone and will have unlimited...