Question

Jean had just finished her Bachelor of Business Administration degree and wanted to put what she had learned to use. She started a clothing business, selling branded t-shirts and sweatshirts. She called her clothing-line "Real East Life" and all the shirts were branded with those words and an anchor symbol. People seemed to really like the branding and sales were growing.
Jean wanted to start designing additional pieces for her clothing line and needed help. She reached out to an old roommate, Beverley, who had recently graduated with a degree in fashion design. In their free time, Jean and Beverley ultimately developed a whole branded clothing line. Sales of the clothing began to skyrocket after a celebrity was photographed wearing the clothes, with the anchor symbol visible.

Though they do not have any formal agreement, Beverley manages the design side of the business and Jean manages the financial side including invoicing, accounts receivable and marketing. This arrangement had been working well. But now, with the rapid growth of their business and the need for additional financing and help in managing the business, Jean and Beverley recognize that they may have to reconsider the form of business operation that best suits their needs.

(a) What form of business organization are Jean and Beverley currently operating? Explain your answer [1 point]

(b) Is there another form of business organization that might better fit their needs given their new circumstances? What are the advantages and disadvantages of your proposed form of business organization? [5 points]

For the remaining questions in this section, assume that Jean and Beverley decide to form a corporation to carry on the business. They plan on operating in Nova Scotia and Newfoundland and Labrador for now, but may someday expand their operations to other provinces.

(c) Do you think Jean and Beverley should incorporate federally or provincially? Why? [2 points]

(d) If Jean is appointed Chief Executive Officer and Beverley is appointed Chief Operating Officer of the new corporation what legal duties would they have in their new roles? [2 points]

(e) What are Jean and Beverley's two main options for financing the corporation? What are the advantages and disadvantages of each form of financing? [3 points]

Obviously, the brand and logo is of central importance to the corporation and Jean and Beverley want to make sure it is protected.

(f) What protection does the law afford for the brand name and anchor symbol and are there any steps Bertha and Beverley must take to ensure that it is protected nationally? [3 points]

Answer 1

Based on the fact that Jean and Beverly manage different sections of the business, the business organization they operate is a Partnership.

What business are Jean and Beverly operating?

Jean and Beverly can be said to be operating the business of a partnership as both of them are in charge of separate parts of the business but work together for the company's success.

Which other type of business would suit them?

Another type of business organization that might suit Jean and Beverly is a limited liability company. The main advantage of this is that it puts their personal assets out of danger in case the company fails.

Unfortunately, their accounts will become public record as anyone can access it from the Companies House.

What type of incorporation should they do?

Jean and Beverly may one day expand to other provinces so they should go for a federal incorporation to avoid the hassle of having to incorporate in every province they expand to.

Find out more on types of business ownerships at brainly.com/question/26356434

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