Question

While attending college, Julie Smith earned extra money by using her cooking skills to cater special parties and events. After graduation, Julie decided to turn her part-time work into a full-time business and if things go well, she plans to expand in the future. Julie wants to maintain control of the business. Identify the best way she should organize and explain the reasons why you selected this method. Discuss fully the following statement: "Corporations are not really run by their owners." Explain these types of business ownership including advantages and disadvantages of each: sole proprietorship, partnership, and corporation. Terri Jones asks for your advice in opening a new business. She plans to provide tax-related services to individuals and small-business owners in her community. She wants an attractive means of starting and operating her business with support, name recognition, and a reasonable hope of succeeding. She wants to preserve her independence as a small business owner, but still enjoy some of the benefits of "bigness." What would be your advice as to the kind of business Terri should look at opening and why?

Answer 1

Answer:

Julie's catering business

Julie should use the model of sole proprietorship

Explanation:

sole proprietorship, is the most useful business entity for Julie as she won’t loss the control of her business and can grow at her own pace because she would be the most important decision maker.

A partnership involves doing an alliance with another person or business then the control will be divided with others.  

Finally, a corporation. needs the collaboration of more shareholders and the span of control will be broader as more persons will be involve in the decision-making process. "Corporations are not really run by their owners." because the people involved in the corporation must take decisions that are not consulted with the owners.

Terri tax-related services

Terry should use the model of sole proprietorship

Explanation

For Terri the sole proprietorship model is the most useful as well because he can grow to obtain recognition and enjoy the benefits of bigness