Question: 1. When we set up business, we decided to operate as a sole proprietorship (with one as the owner and other as an employee). Why

1. When we set up business, we decided to operate as a sole proprietorship (with one as the owner and other as an employee). Why was this a sensible decision for you? Your answer should reference at least two benefits of a sole proprietorship (2 marks)

2. Now that the business is successful, we bought a vacation home and have accumulated $100,000 in savings. We think it's time to switch to a different business form. Identify which business form is the best option now in light of the business' success and the personal assets. (1 mark)

3. Explain why this new business form is the best option. Explain at least two benefits of that business form given the business' success and the personal assets. (2 marks)

4. What are the consequences for me, as a business owner, if the business in its new form is not able to pay a debt? Are my personal assets protected? Explain. (3 marks) 5. Entering into an agency arrangement with a marketing company to develop the social media presence and increase the customer base.

A) Explain how this arrangement works when the marketing company signs a contract with a social media influencer to promote your products. Who is bound by the contract - the marketing company or your business? Why? (2 marks)
B) If the marketing company buys advertising on a social media platform against your instructions, does your business have to honour the agreement? Why or why not? (2 marks)

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Operating as a sole proprietorship is a sensible decision for several reasons a Simplicity Sole proprietorships are easy to set up and manage requiring minimal paperwork and formalities compared to ot... View full answer

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