Reference no: EM13652079

Business organizations range from part-time sole proprietorships selling a few hundred dollarsper year to publicly traded corporations on the New York Stock Exchange selling billions ofdollars worth of products and services to the global marketplace.Regardless of the form of organization, being a successful business owner requires you to knowthe different forms of business organizations, their characteristics and their advantages anddisadvantages. This will also help you to determine what is the best business organization andstructure for a particular situation, such as your own business. Keep in mind that evenprofessionals, such as doctors and accountants, find it important to structure their business in acertain way.For this activity, you will have the opportunity to closely analyze the various forms of businessorganizations by creating a fictional business. You can pick any type of business or industrythat you have an interest in - for example: a gym, clothing store, accounting practice, socialnetworking site or restaurant. Use this activity to be creative!Please completely address all of the following questions in your essay. Your essay will bejudged on your capacity to present strong, analytical and logical discussions that support yourconclusions.• Describe the nature of your business. What are your objectives?• Will you organize the business as a sole proprietorship, partnership, limited liabilitycompany (LLC) or a corporation? Thoroughly explain your choice including theadvantages and disadvantages to your chosen form of business organization.• How must your business be started up or formed? What steps must be taken toensure proper formation?• Describe your own personal liability for any debts incurred by the business. Are yourpersonal assets safe from creditors? Do you have any options for protecting yourpersonal assets?• Describe the dissolution (or "winding up") process for your chosen businessorganization. Can the business continue on after your personal interest is terminated?PART IIFrolic, Inc. ("Frolic") is a publicly traded corporation with its shares listed on the New YorkStock Exchange. In existence since 1972, Frolic was formed under Delaware law for thepurpose of "investing in, developing, acquiring, and/or operating all forms of entertainmentventures suitable for children and/or adults." To that end, Frolic currently owns and operatesapproximately 100 amusement parks, movie theaters, party centers, and similar attractionslocated in some thirty-five states.Clyde and Fresno are shareholders with significant investments in Frolic. Both retired,Clyde and Fresno make it a point every year to attend Frolic's annual shareholders' meeting inChicago, Illinois, where they personally vote their shares. This year, Clyde and Fresno areextremely upset, having learned that the Board of Directors a majority of the shareholders intendto elect has decided to "take Frolic in a new direction of family entertainment." In this regard,Clyde and Fresno have read where the new Board intends to "turn the corporate focus away"from amusement parks and movie theaters and instead focus on "more wholesome recreationalventures" like "petting zoos, pumpkin patches, and apple picking orchards."As shareholders who have seen the value of their stock skyrocket over the years, Clydeand Fresno are furious about this new business plan, which they see as "ill-advised" given theprofit margin Fresno currently maintains on movie theater and amusement park tickets. Despitetheir efforts and vigorous objections, however, the new Board is elected by an overwhelmingmajority vote, and Frolic begins acquiring what it deems "wholesome family attractions" acrossthe country.Sure enough, Clyde and Fresno were right. In a matter of months, the price of their stockbegins to plummet as Frolic begins to transition into the petting zoo and apple orchard business.With time on their hands, not wanting to sell their stock and relinquish their "hobby" of beingactive shareholders, Clyde and Fresno decide instead to sue the new Board of Directors overtheir decision to take Frolic in a "new direction of family entertainment."QUESTION: Are Clyde and Fresno likely to have much success in their lawsuitchallenging the Board's decisions? Explain.This section will, in part, be graded on how successful you are in:a. Assessing the relevant facts supporting your position;b. Applying these facts to the appropriate legal theory; andc. Analyzing the strengths and weaknesses of your position.The assignment should be presented in APA format and be a minimum of 500 words (2 pagesor more), to be double-spaced, typed in 12-point font. The point allocation and gradingparameters are outlined in the grading rubric for this activity. Please download and print a copyof the grading rubric to use as a reference.