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Business ownership status from sole proprietorship

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Your family-run business, Fancy Juice, has been producing and bottling high quality organic juices in Vancouver, British Columbia since 1980. With the recent retirement of your father, you have been appointed as CEO. Within weeks of assuming the lead role, you decide that the increased demand in the growing juice industry necessitates an expansion. You are currently looking at a few possible avenues to setup a second headquarters for your business. One of your friends, who is interested in becoming your partner, have shown interest in helping you with your expansion plans. Both of you have agreed on some operational aspects of the business; however, the question of where to base the business's headquarters is still not decided upon. Your friend is convinced that headquarters should be in China, his country of birth, as his social connections can really help the business. You, being a Canadian living in Ontario, are not sure it is a good idea for several reasons.

If you accept your friend's proposal and change the business ownership status from sole proprietorship to a partnership, what might be the advantages or disadvantages of this change?

Reference no: EM133375699

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