Scribd
Upload
34 views

4.01 Which Ownership is Best

The document discusses various scenarios of business ownership, focusing on the decisions of individuals regarding hiring, partnerships, and corporations. It evaluates the pros and cons of different business structures, such as maintaining control as a sole proprietor versus sharing responsibilities in a partnership or corporation. The scenarios involve Mary and Greg, Teri and Francis, and Jade and John, highlighting their considerations for expanding their businesses.

Uploaded by

pfili8010
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
34 views

4.01 Which Ownership is Best

The document discusses various scenarios of business ownership, focusing on the decisions of individuals regarding hiring, partnerships, and corporations. It evaluates the pros and cons of different business structures, such as maintaining control as a sole proprietor versus sharing responsibilities in a partnership or corporation. The scenarios involve Mary and Greg, Teri and Francis, and Jade and John, highlighting their considerations for expanding their businesses.

Uploaded by

pfili8010
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

4.

01 FORMS OF BUSINESS OWNERSHIP

Directions: Read the scenarios and provide responses in your own words.

Scenario 1: Mary makes jewelry for her own business named The Design For You. She needs help in
completing orders to make necklaces and earring sets in a timely manner. Mary prefers working alone at her
own pace. Mary’s cousin named Greg has expressed interest in starting a business too. He likes using his
hands, designing things, and has access to jewelry-making tools too.

1. Should Mary hire Greg to help her make the orders for jewelry or form a partnership with him?
Mary should consider hiring Greg instead of forming a partnership, as it allows her to maintain control over
her business.
2. Compare the advantages and disadvantages of hiring Greg and remaining as a sole proprietorship.
Advantages of hiring Greg include flexibility and maintaining full control, while disadvantages may include
increased workload and potentially slower order completion.
3. Compare the advantages and disadvantages of forming a partnership with Greg.

Advantages of forming a partnership with Greg could include shared responsibilities and creativity, while
disadvantages may involve conflicts over decision-making and profit sharing.

Scenario 2: Teri enjoys assisting other students with their homework. Her neighbor named Francis volunteers
in assisting younger students with their homework after-school program. Teri and Francis talked about forming
a partnership and expanding their services.

1. Should Teri and Francis form a partnership? Yes, Teri and Francis should consider forming a
partnership to leverage their skills and expand their reach.
2. Compare the advantages and disadvantages of them forming a partnership.

Advantages of forming a partnership include pooling resources and enhancing service offerings, while
disadvantages may involve divided decision-making and potential disagreements.

Scenario 3: Jade and John own and operate several ice cream stores. Jade is interested in expanding the
business by offering additional services and opening more locations. John reminded Jade that they will need
more resources in order to expand. Jade suggested that they offer shares to relatives to finance the expansion.

1. Should Jade and John form a corporation? ________________________________

__________________________________________________________________

2. Compare the advantages and disadvantages of them forming a corporation.

_____________________________________________________________________________________
_________________________________________________

You might also like