Type Of Organizational Form That Shania 's Future Cafe Essay examples

Type Of Organizational Form That Shania 's Future Cafe Essay examples

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Shania Jackson finds herself with an exciting opportunity of possibly opening up her very own coffeehouse. Amid all of her excitement though are a number of issues that must first be considered, such as her choice of organizational form, whether or not she should be part of a franchise, the name of her coffeehouse, and who she should include in the business with her. In the end Shania should organize her business as a limited partnership without franchising, also considering altering the name slightly to bring more clarity to what the business is about, while including all those she wishes to work for her.
The first issue at hand is the type of organizational form that Shania’s future coffeehouse should take. According to the case study, Shania has considered many of the different organizational forms such as a sole proprietorship, some type of partnership, corporation, LLC, and others. Without knowing much more about Shania’s long term goals and basing a decision off of only the information provided in the case study, it would seem best for Shania to organize her business as a limited liability partnership. The main reason being for this conclusion is that the case study suggests that Shania’s husband, Marvin, is willing to contribute capital to this business but has no interest in managing it. According to Kubasek, Brennan, and Browne (2015), “limited partners cannot take part in management,” and the limited partners liability “is limited to his or her capital contribution.” (p. 420). That being the case, a limited liability partnership should align well with both Shania and her husband’s desires for running the business, where Marvin can help out by contributing capital, but not have to worry about the day to day management of...


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... help ease any conflicts with Kelsey’s husband. Lastly, having Carlos as a partner is not recommended as he is not a believer, but having him as an employee would probably be just fine and could be used as an opportunity for him to hear the gospel more and maybe some day become a believer because of his interactions with them through the coffeehouse. The main reason being for not including Carlos as a partner would be how it says in 2 Corinthians 6:14 to “not be unequally yoked with unbelievers” (ESV). While this verse is typically applied in the context of marriage, it can also be used in the business world. However, it should not be used to exclusively only hire Christians over non-Christians , just that when joining with someone as a business partner, they should also be a Christian or else there will probably conflicts in deciding how the business should be run.

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