Evaluate the following scenario and determine why the particular form of business organization should be used.
Define the form of business organization currently used
Discuss the advantages and disadvantages of this form of business organization
Define at least two alternative forms of business organization
Discuss the advantages and disadvantages of these forms of business organization
Choose a form, justifying your selection with adequate discussion
Discuss why the alternative form is not as well suited
Consider some of the legal problems associated with the type of business involved. Provide citations to support your answer.
Conway just received his contractor's license in the state of Virginia. For years, Conway did light construction work for a few commercial accounts. He was very successful and had enough clients to keep him busy, along with his father and brother, working six days a week. Occasionally, a client would hire Conway to do a substantial amount of carpentry work for an entire business. Conway has purchased a substantial amount of property. He intends to create an upscale neighborhood containing houses valued in the $200,000 range. He realizes that he will have to borrow heavily to construct the first few houses. At present, Conway's business operates as a sole proprietorship. Should Conway continue to operate his business as a sole proprietorship? Should he operate his business as a partnership? Explain why or why not.
Form of business organization is an important issue to be addressed by the owner of the firm. It should be selected as per the situation and the requirements of the business. Conway is running a growing organization. Earlier he was doing only a few commercial accounts but now his plan is to have growth in the construction industry and build houses. This will require lot of funds and hence he can operate his business as a partnership instead of sole proprietorship.
Let us first discuss the sole proprietorship. A ...
This solution helps in evaluating the scenario and determining why the particular form of business organization should be used. A sole proprietorship is discussed in terms of advantages and disadvantages, as well as whether a corporation or partnership would be better for this case. It is approximately 363 words with 1 reference.