1. When considering which structure to choose for your new business, you think through your strengths and weaknesses. One of your strengths is that you are very good at bringing people together around common goals and a shared vision. A weakness is that you dont have sufficient capital to start the business alone and you need to recruit a number of investors. The form of business that will address these strengths and weaknesses is

Select a partnership, a limited-liability company, a corporation, a sole proprietorship

2. There are four key considerations for evaluating ownership structure. Identify the consideration described by each statement below by using the dropdown list.

a. What if business doesnt go as planned and I get stuck owing my suppliers money? Whos ultimately responsible for paying that? SelectTaxes and division of profitsLegal and financial liabilityEase of start-up and administrationControl and transfer of ownershipItem 1 b. What are the legal requirements for starting and running this business? And what is the cost? SelectTaxes and division of profitsLegal and financial liabilityEase of start-up and administrationControl and transfer of ownershipItem 2 c. Who is going to make the day-to-day administrative decisions? Do I want to make those decisions alone, or am I willing to share them with others? SelectTaxes and division of profitsLegal and financial liabilityEase of start-up and administrationControl and transfer of ownershipItem 3 d. How much of my profits will I get to keep after taxes? SelectTaxes and division of profitsLegal and financial liabilityEase of start-up and administrationControl and transfer of ownershipItem 4

3. For each example, select the best form of business by selecting from the drop-down list.

a. A five-person consulting business. Each person is investing equal amounts and expects to receive equal profits. Each person consults in a specific specialty, making this a valuable team. When forming the company, the owners will specify how and when other people might be allowed to buy-in to the business, but they would only do so if that person brought a specific expertise the team didnt already have.SelectSole proprietorshipPartnershipCorporationItem 1 b. A catering company whose first contract is to provide food service to a major computer company at all of their campuses in the U.S. The catering company will need to open offices, hire employees, handle inventory, and much more. As a result, the company needs a $250,000 investment to get started. SelectSole proprietorshipPartnershipCorporationItem 2 c. A small carpentry business. The owner wants to register their name, buy a business license, and get started.

4. Your business is a sole proprietorship, and this has met your needs until now. However, you are tired of going it alone. You work with a contractor who would add a lot to the business. Youd love a situation where he could buy in to the business and you would share responsibilities (and profits). Not only would this add some expertise, but having him buy in would add some capital to the business. What form of ownership would best fit your needs?

a. Partnership

b. Limited-Liability Company (LLC)

c. Distributorship

d. Corporation