We know the four legal forms of business ownership (i.e. sole proprietorship, partnership. corporation and co-operative). Discuss the best form of business ownership for each of the following businesses (ensure to explain the reason(s)).

 

1) Linda is an event planner, and has been marketing her services mainly through the internet and word-of-mouth.

 

2) Johnny is running his gardening business on his own for 3 years, and is now bringing in his 2 adult sons to run the business together. They will gradually take over the business.

 

3) Owners from the same apartment building would like to establish their own entity to manage their own building in order to reduce the maintenance expenses.

 

4) A restaurant owner is expanding his business and is able to bring in 5 investors who do not want to participate in the day-to-day operations. These investors do not want to lose more than their original investment, and also like to have less restrictions to sell their ownership.

 

5) An investment manager would like to raise $10 million from 20 investors to set up an alternative investment portfolio with minimal legal requirement. These investors do not want to lose more than their original investment.

Answer rating: 100% (QA)

1 The best form of business for Linda is Sole proprietorship She does not have anyone together in he... View the full answer