Reference no: EM132945480

Problem 1: Through their joint efforts, Mr. and Mrs. Paul Braga was successful in their business as sole proprietor with "Brags Trading" as business/trade name. Both already Senior Citizens, they want to retire and transfer the management of their business to their five (5) children without interference coming from other persons. They approach you seeking your professional advice as to what type of business organization have to be put-up for them to manage the business. Which of the following will you advise as the best:

Required to answer. Single choice.

Choices

Option 1: Closed Corporation whereby ownership of the business shall be limited to them and to their heirs in case of death who can all participate in the management thereof;

Option 2: Open Corporation (OC) whereby they can raise fund with ease by inviting other persons to join as stockholders;

Option 3: Partnership without any Managing Partner for any one of them can bind the partnership;

Option 4: One Person Corporation (OPC) because management of the business shall be undertaken by any one of them alone;