Joint Venture is “a partnership, individual, or corporation that pools labor and capital for a limited period of time” (Kubasek, Brennan, Browne, 2015, p. 431). This method can increase liability and limit outside opportunities where the business can not expand their product line and have to utilize the products provided by the company they have a joint in a agreement. The mission of the coffeehouse is to be unique and special. This type of model would not allow originality and for that reason, its not recommend that Shania get involved with a joint venture.
Limited Liability Companies
Limited Liability Companies (LLC) is “a form of business organization with the liability-shield advantages of a corporation and the flexibility and tax pass-through advantages of a partnership” (Entrepreneur, 2015). The members of the LLC “share in the profits from the business and exercise management control without these actions affecting their profits share or limited liability status”(Kubasek, Brennan, Browne, 2015, p. 455). Like any other business form, LLC have some disadvantages, but the main one is that all decisions are made by majority vote.
This is a model that Shania can benefit from in the long run. Considering the desire of her husband to contribute capital to the business, this model will protect the family financial status in the case of a financial liability or if the business incurred in some loss.
Shania discovered that she have the option to engage in a franchising where there is already a business model in place. As franchising is “a relationship based on a private commercial agreement between the franchisor, who owns a trade name or trademark, and the franchisee, who sells or distributes goods u...
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...orship and partnership in business. New Straits Times, p. 12. Retrieved June 23, 2015.
Kubasek, N., Brennan, B., & Browne, M. (2015). The legal environment of business: A critical-thinking approach (7th ed., p. 422-455). Upper Saddle River, N.J.: Pearson.
Limited Liability Company. (2015). Retrieved June 23, 2015, from http://www.entrepreneur.com/encyclopedia/limited-liability-company
Lorette, K. (2015). Advantages and Disadvantages of the Corporate Form of Business. Retrieved June 23, 2015, from http://smallbusiness.chron.com/advantages-disadvantages-corporate-form-business-4389.html
Williams, W. (n.d.). Colorado Secretary of State. Retrieved June 23, 2015, from http://www.sos.state.co.us/biz/BusinessEntityResults.do?&cmd=passgo&pi1=1
Zizzo, K. (2000, October 12). Pros and cons of sole proprietorship. The Hamilton Spectator. Retrieved June 23, 2015.
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