Business Organization
Business Forms
Sole Proprietorship
This is the easiest and simplest form of business ownership. The sole proprietorship is a business organization that is owned and operated by a single person (Astrachan, & Shanker, 2003). Betty can choose to be a sole trader and the individual owner of the coffeehouse. The business will be unincorporated and Betty will be personally liable for any debts, losses or legal action. On the other hand she will keep all the profits and will also be the boss and can propagate her Christian values in the business model.
Limited Liability Company
This is a flexible form of business that is considered to be a blend between a corporation and a partnership (Toal & Riley, 2004). This type of ownership provides for a limited liability. It can be taxed as a sole proprietorship or partnership. This is the most flexible form of ownership and its limited liability depends on state laws.
Joint Venture
This is a form of business where two or more parties agree to form a new business entity (Luo, 2007). Betty will share assets, expenses and revenue with her partners and will exercise shared control of the business entity. The joint venture is an elusive legal concept which is best explained by the company law in a given jurisdiction.
Partnership
In this business arrangement Betty will get into an agreement with the neighbor in order to start the coffeehouse. The partnership is a business that is owned by two or more people.
Partnerships are also easy to start because there are few formalities. The main advantage is that she will have additional capital to invest in the business. In partnerships the partners share the risk and exchange ideas. The responsibilities will also be shared. The main dis...
... middle of paper ...
...t there is a business which is currently active with that name in the state of North Carolina.
Trademark Name
The name she is considering is a good trademark name but she cannot legally use it. It separates Betty from her business and is memorable. It is also meaningful for a coffeehouse where people gather to chat and enjoy a beverage. The only problem is that the name is not legally protectable because there is an existing business with that name. After conducting the search in the North Carolina state database the results indicated that that business name was used by several businesses including worship centers. Trademark names are the legal names of business entities and are required to be unique in order to give proper identification to the business. The name Betty has used cannot be used for any legitimate business reason because it is owned by another entity.
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.
Chet Craig is the Central Plant Manager of the Norris Company. He started as an expediter in the company's eastern plant and was quickly promoted to Production Supervisor in three years. After two years, he was promoted to Assistant to the Manager of the Eastern Plant. Five years later, Chet was transferred to the central plant as an Assistant, and after one month, was promoted to his current position.
If you decided not to become a franchised company, and went forward independently, then you should also know that the name “The Gathering Place” has been trademarked as the name of a temporary shelter for the homeless and impoverished in Denver, Colorado (USPTO, 2013). This trademark was up for opposition on October 16, 2012, and it became a valid trademark on January 1st the year of 2013 (USPTO, 2013). I am sorry to say that even if you became an independent operator you would be unable to utilize that specific name, thus another reason to become a
The connection between the article and the material that was presented in class is the idea of a commodity. The article specifically uses the examples of the names of Winn- Dixie, and Catfish. The corporation that owns Winn-Dixie recently bought a smaller chain of stores. Consequently, it then retired the name of the bought corporation and renamed the newly acquired stores Winn-Dixie. This is because of two reasons. The name Winn-Dixie is highly known throughout the south for having a respectable reputation. The stores that were bought out by Winn-Dixie had been struggling. Therefore their former name had a reputation of being a downtrodden chain that was associated with its recent struggles and problems. It was in the best interest for a name change to happen. It all has to due name familiarity. Whenever people see a name they recognize, they associate it with either a good connotation or a bad connotation. That is what causes a person or a business to either lose money or turn profit. The other example used is that of the name catfish.
Enterprises are not quite the same as alternate business substances in that they can be viewed as a different legitimate element, contingent upon the laws overseeing the creation and working of the organization. There are a couple points of interest of a partnership. To start with, benefits are saddled as wage to the shareholders, not the accomplices. Second, it is anything but difficult to raise capital by issuing stock. Third, shareholders have constrained obligation (Kubasek, 2014). There are likewise a couple weaknesses related with a company. To start with, customs are required in setting up and keeping up corporate shape. Second, corporate salary is exhausted twice (Kubasek,
Appealing to investors is also important. When deciding upon a name for your business, try to avoid overly peculiar names. Lastly, register a name that isn’t already in use by another company.
I am calling my business this as it is a catchy name, and the logo is
The name also sounds unique and not like all the rest of other coffee houses therefore cannot be easily lost in the crowd. The name stands out dramatically even it doesn’t what the business does. The name is also legally available therefore Shania has full rights to the name. The Gathering Place does not lend itself to initials therefore safe from drowning in the list of other names of businesses that have initialized due to their exceptionally long names. Another advantage to the name The Gathering Place is flexibility and expandability available to it. Since the name does not actually describe what the business does, Shania can offer a raft of other services without the need to update the name. A good business name has to be linguistically clean. How it is pronounced by Spaniards, the French, and Italians or by any other native language speakers should not bring out a completely different meaning (Chajet, 2011). The Gathering Place is fairly easy to pronounce and therefore serves to be inclusive to different language speakers. A name that will not age quickly is also of paramount importance. The Gathering Place is not an expression that can be superseded sooner or later and also plays well across all
There are many different types of business structures, but if you own and operate a business that it is a sole
Although small businesses do not make a lot of major deals with large investors, most small businesses create profit revenue greater than large corporations. Small business creators are very brave considering only ten percent of small businesses survive. Unfortunately, some communities do not support local small businesses; they only support the large brand name and force small businesses to die out. Since small businesses will not have a name brand known around the world, many people from communities will not support them because they are not known on a national scale. “This, in turn will affect the local economy and drive capital out of their local economy. On average, for every one hundred dollars spent in an economy, if spent on a
Another example of business ownership is a partnership. Examples of partnerships used in business are accounting firms and solicitors firms. A partnership has two or more owners. They work, manage and are responsible for the running of the business. Individual partners may concentrate on a certain aspect of the business where they have expert knowledge. As there is more than one owner, larger amounts of capital can be fed into the business via personal funding or bank loans. Partnerships have an unlimited liability.
Pruett, M., & Winter, G. (2011). Why do entrepreneurs enter franchising and other share relationships?1. Journal of Small Business and Entrepreneurship, 24(4), 567-581,603-604. Retrieved from http://search.proquest.com/docview/923419785?accountid=39476
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
...s of a partnership are the shared profit factor, which can cause a lot of animosity among the partners if things do not go as well or if there is an unequal amount of contribution among the partners. Additionally, there is both individual and joint liability with partnerships. This can often cause dissention between the partners (“SBA”). Essentially, the sole proprietorship is the best choice because the risks are minimal because it is solely one individual, who can make the best choices and decisions and deal with the consequences that arise accordingly.
Organizations are established in specific ways to obtain different objectives, and the structure of an organization can help or restrain its advance toward accomplishing these goals. Organizations of different sized and types can achieve higher sales and other profit adequately by identifying their requirements with the structure they use to operate.