Read the following fact patterns. Assume the role of consultant and prepare a brief memorandum for your clients that suggest the appropriate business structure for their needs. In doing so, fully explain your reasoning and spell out the pros and cons of the suggested structure. Also, include the reasons why you excluded other forms of consideration. If there is additional information you would need from the entrepreneurs, indicate the questions you would ask them. Your response should be a minimum of 500 words.
Updated assignment1. LEGAL FORMATION – MEMO: Select and answer 1 out of the 3 Case Studies Memos presented on pp. 20-21 in the syllabus below. Critical Thinking: Be sure to explore all alternatives before presenting your final recommendation.
1. Green is a talented artist and he creates landscape paintings while working in the open air. Green originally started selling his works at flea markets and small craft fairs. The popular response encouraged him to create a website and start a mail-order business. He outsources some of the printing responsibilities, and hired someone part time to help him ship out his work to website-based customers. He does not currently own permanent retail space, but he has not ruled it out. What business structure(s) would you recommend to Green? Advise Green of the pros and cons of that structure.
2. Sue and Nancy have just patented a coffee-roasting procedure and have plans to open a small, storefront coffee-shop in suburban New Jersey that will be centered around that process. Both have substantial personal assets. However, they also will be seeking additional financial backing through loans and investors. They will need to pay rent, invest in all of the machinery for the store, purchase décor and furniture, stock supplies, and develop a marketing campaign. They are new to the business, with few business connections, and they plan to canvass their friends and family for potential backings. What business structure(s) would you recommend to Sue and Nancy? Advise Sue and Nancy on the pros and cons of that structure.
3. Matt, Brock and George are good friends who are skilled web-site designers. They have complementary skills and work well together. One thing they share in common is that they are self-proclaimed “control freaks” and do not like to take orders from others. As such, the trio has decided to pool their resources, self-employ, and create a web design and consulting business. They would work with small companies and perform various services such: design websites, set up online e-commerce stores, provide digital photography services, provide graphic design consultation, and programming (for bookkeeping, privacy and security, etc.). Matt would travel extensively and meet with clients; Brock would provide the expertise and consulting; George would provide the programming. They have limited personal assets and would need seed money to implement this business plan. Initially, they need a company vehicle, small office space, and technical equipment. They have plans for extensive future growth and eventually would like to work with larger companies. What business structure(s) would you recommend to Matt, Brock, and George? Advise them on the pros and cons of that structure.