Reference no: EM131475187
Assignment: Business Law
DO THE FOLLOWING:
This assignment tests your understanding of Learning Objective #4 - "Define and distinguish between sole proprietorships, partnerships and corporations."
You have been able to save $100,000. Your best friend (you supply the name - it doesn't have to be your real best friend) just won $100,000 in the California lottery.
You and your best friend have always talked about opening a store that sells (you name the store and provide a description of what the store will offer). You have enough money to start the store on your own. Your best friend wants to invest in the store with you, but you are not sure if you want [him/her] as a "partner." Your assignment:
1. Using the example of your store, explain the advantages and disadvantages of opening the store on your own as a sole proprietorship.
2. Using the example of your store, explain the advantages and disadvantages of opening the store with your best friend as a general partnership.
3. Using the example of your store, explain the advantages and disadvantages of forming a corporation with your best friend to operate the store. How would operating the store as a corporation be different from operating the store as a general partnership?
You must answer all of the questions above.
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