Learning Activity 8.
I’m stuck on a Business Law question and need an explanation.
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- Read/watch all assigned materials listed for the week in the Course Content
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Learning Activity: due 11:59 pm ET, Thursday
Background: Connor, Ali, Madison, and Sam recognize an important early step in creating GC is to agree on a business organizational form and clarify the owners’ roles because each has different priorities, interests, and expectations about the business.
Businesses are created in one of several organizational structures, or forms. Choosing a business structure involves several factors, including which structure is most favorable for the business and its owners.
The goal for GC is to minimize legal risks and liabilities, as well as tax liabilities, for the owners and the business. The owners understand a business organizational structure can achieve this goal and can define their managerial roles and responsibilities clearly to satisfy their interests and maximize their areas of expertise.
Connor, Ali, Madison, and Sam agree that weighing and balancing advantages and disadvantages for the company and its owners is the heart of the process of choosing a business structure. The owners have met privately to discuss their decision. They are now ready to meet with TLG for further analysis, negotiation, and a decision regarding the Green Clean business structure.
Instructions: To assist in this process, Winnie and Ralph asked you to assess several business structures and their characteristics, advantages and disadvantages for Green Clean. Those structures are:
- General Partnership
- Limited Partnership
- Limited Liability Partnership
- General Corporation
- Limited Liability Company
Evaluate and synthesize this information, and do the following 2 things.
1. Create a comparison matrix that shows the 5 types of business structures and compares and contrasts each type of business structure.
You may use the chart format in the hyperlink above, or create a similar chart, or create an excel chart.
The chart should include several areas for comparison, i.e., procedure for formation, cost of formation, etc. The chart should include various types of liability for comparison.
The chart should be an in-depth and comprehensive comparison.
Ensure the pros and cons of each organizational structure are easily and clearly compared on the chart.
2. Write a memo to GC owners:
A. recommending a business structure for GC that best minimizes tax and personal liability for the new business and its owners
B. explaining and justifying your recommendation, specifically and in detail.
TO: Winnie James, Ralph Anders
FROM: (your name)
RE: Green Clean Business Structure
Use correct, complete sentences, in paragraph format.