Summary
Shania is interested in starting her own Christian coffeehouse that she wants to call The Gathering Place in Colorado. Her Husband is onboard with the idea and want to be involved in the capital of the business but not the operation and management. Her sister, who is a homemaker wanting to escape home, and Carlos, Shania’s neighbor that want to make extra income, are interested in working with her in her new business venture. Shania has researched some franchising opportunities and other business opportunities that would fit her vision such as sole proprietorship, partnership, corporation, LLC and joint venture.
Business Forms
In the case study Shania wanted to know about her options for business organizations such as sole proprietorship,
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Each member or partner in LLC have equal control and control over daily management decisions. One of the advantages of LLC is that the partners don not have to pay from their own money the debts and liabilities of the LLC. Joint Venture involves two or more individuals in a contractual business for a limited period of time or to carry out one particular task. The disadvantage is that the objective may not be clear to all parties involved. Also, not a lot of support is provided in the early stages. The business form that would best fit Shania goals is corporation. Corporation is the best option because it has the best liability protection. Also, it is easier to obtain outside funding for her business and capital for the business can be raised …show more content…
She would not be obligated to contractual responsibilities of a franchisor. In addition, Shania can start up her business in her own pace. Franchising is an agreement between franchisor, the company who occupies the tradename and trademark, and franchisee, the party that sells and distributes the goods or services using the tradename and trademark (). It would be recommended that Shania to look into franchising. The option to franchise allows the inexperience individual to become a part of business with little to no business experience (). Franchising can offer Shania the opportunity to test out her business concept by potentially avoiding mistakes and run a business risk free (). Franchising would offer support to Shania in selecting a location for business, design, construction, financing and training
Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
This is a complex case, involving multiple parties and several variables that need to be examined thoroughly. The parties mentioned include Knarles operator of the facility maintenance company, his son Barkley, their employee, a licensed plumber, and Mr. Chetum. Although in the end Chetum is suing the facilities maintenance firm for a breach of contract, all factors must be examined to determine proper fault.
I recommend that you transition from a sole proprietorship to a limited liability company or LLC. This will allow you to take advantage of certain favorable tax treatments, as well as personal liability protection, for the “members” involved. I will list some key areas where you will benefit from operating
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.
Within this discussion board post, you offered rationale for Shania to either hire or not hire Carlos. As I worked on this part of the case study, I wrestled with these choices, as well, especially since I could not decide whether Carlos’s role was to be an investor, a partner, or an employee. Since Carlos’s vision for the Christian coffee shop was quite a bit different from Shania’s plan, I decided that having him as a partner would not be wise. My reasoning was based on Paul’s instructions that believers should not bind themselves to unbelievers, because partnerships will not work if one member is in the dark and the other is in the light (2 Cor. 6:14). John MacArthur (n.d.) reasons that a believer cannot partner with someone who is
Given the situation, as manager of the office, Sara must talk to Nell and tell her that she can not allow her to stay doing her work because she is not fit to comply with them due to her drunken state. However, you must ask her to leave the office and return the next day when she is already sober to talk about the particular situation.
...hasnt happened yet it would be very benacfial for her compnay. She works well alone and it has gotten her very far a a young estetician. her customers are great and expanding her services would also wrk in her favor and allow her regualars to try something new. Advestising could help her company grow but it might not help since she is the only one performing services.
The franchising system is one of the most successful and profitable business method in the world.This system entired Turkish market 15 years ago and it continues to grow.This system has also led to increasing working people rate in Turkey.According to National Franchise Associotion's report (1999) ''there were nearly 200 franchisors and more than 4000 franchisees in 1998 and it will continue to increase'' (p22)
In this paper, I’m going to be telling you the difference between a Small business and a corporation. These two have a lot in compared and a lot of difference. There are a lot of small business and corporation growing fast throughout the world. Both businesses take a lot to manage and you also must have the skill and the ability to do so. If it was easy, everybody would have some type of business growing in this world
Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand without having to pay such a large initial cost to open a new store since the franchise purchaser pays a cost to open the business. As well, the company can regulate many of the business activities so that there is a sense of consistency throughout all of the locations. The purchaser is allowed to use the trademarks and goods of the franchise which already have a large market presence. As well, they are provided with training and work standards by the company to help their business run smoothly (Kalnins & Lafontaine, 2004, p.761). Looking at the business model of the world’s largest food retailer, McDonald’s, provides great insight into franchising and business growth in general as well a better understanding of a global business that utilizes the franchising technique.
Before a partnership formation is imminent, the business needs to decide on which type of partnership to form. There are three types of partnerships: (1) general partnerships, (2) limited partnerships, and (3) joint ventures. All three partnerships contain two or more owners, but all partners assume equal division of ownership, liabilities, and profits in a general partnership. Limited partnerships offer limited liability protection based on each partner’s contribution percentage. Joint ventures are classified as general partnerships with limited existence periods. Once a type of partnership has been determined, the business fulfills a series of requirements before the partnership can be successfully formed. The first step is to register
Manufacturing Franchise: These types of franchises provide an organization with the right to manufacture a product and sell it to the public, using the franchisor’s name and trademark. This type of franchise if found most often in the food and beverage industry. Most bottlers of soft drinks receive a franchise from a company and must use its ingredients to produce, bottle, and distribute the soft drinks.
The XYZ Corporation was established in 2004 and their main office is located in Vancouver, BC. The company’s main objective is to create new innovating technology for media devices, computers, and digital music players. They deal with the design, manufacturing and marketing of the products. XYZ Corporation has been providing Canadians with groundbreaking technology throughout the years and continues to create new technology to provide others with top-level technology. Although, recently their success rate has appeared to drop rapidly due to a number of factors that will be explored throughout this case study. Their main objective is to target the problems so that they can work towards having the issues resolved as quickly as possible. If they do not take any course of action, the state of the company may be in extreme danger. This case study is designed to explore the areas of the company and discover the problems blocking the XYZ Corporation from success.
Making the decision to open your own business is a major life event. Starting a new venture can be exciting as well as rewarding. The first step to becoming a business owner is choosing the type of business you would like to run. This business can be something that you have wanted to start up yourself or you can go with an established franchise. Are you willing to share the profits in exchange for the relative safety of a franchise or would you prefer the risk and rewards of pursuing your own vision? Franchising is a continuing relationship wherein a franchisor provides a licensed privilege to the franchisee to do business and offer assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration
The first step in any business is to think of or create a business idea. Without an idea, one cannot launch their business off the ground. A right direction is needed to create a business with a unique idea. However, other options include franchising or buying an existing business (1). Franchising allows an individual to run stores such as Burger King or McDonalds under the corporate name. It involves taking training classes and a heap of money in order to start a franchise. A Franchisee will have to buy products and services from the corporate entity they are franchising from, which is often required. Buying a franchise is like taking a piece of the pie from the company that is franchising and sharing that pie with everybody else. In addition having a franchise allows one to communicate and in essence become a big part of an added business opportunity (4). Franchising is far from easy to start and maintain for that matter. Starting a franchise involves a l...