Question

NEED 10 PAPER

You are the manager of Acme Fireworks. The company started in the owner�s garage two years ago and now has 15 employees that you manage. The company started as a sole proprietor, and the owner has never changed the entity. The company makes and sells fireworks. The owner has informed you that the company has received inquiries from several large retailers about the company�s ability to fill large orders on a regular basis. The owner told the retailers that the company could fill such orders, and a price per unit was agreed upon. No other details were discussed. The owner is anticipating that new employees will need to be hired but is worried that if the large orders do not continue, the company will not have the funds to pay the new employees. The owner is now considering changing the business entity but does not know what entity to form or how to form it.

The owner has asked you to do the following:

• Explain potential personal liability for injuries to consumers caused by the product.
• Analyze whether the owner formed a contract with the retailers applying the five elements as discussed from Week Two to the hypothetical facts.
• Analyze how different employment types could be used with application of hypothetical facts.
• Recommend a new business entity. Provide a rationale to support your recommendation

For each task, be sure to analyze the relevant law, apply the facts to the law, and make a conclusion. OUTLINE BELOW

1. Introduction

1. Provide a brief overview of the content contained within the proposal.
2. Thesis: Transition from the current sole proprietorship to a Limited Liability Company (LLC) is the most seamless and logical progression based on the projected business model.

1. Assessed Product Risk and Personal Liability

1. Discuss the inherent risks associated with firework manufacturing and shipping.
2. Note the variations/correlations in personal and business liabilities due to perceived negligence resulting in consumer/employee injury.
3. Potential liabilities resulting from defective merchandise.
4. Contract Viability
5. Review the five elements of a contract from the information provided.
   1. Offer
   2. Acceptance
   3. Consideration
   4. Legality
   5. Capacity
6. Provide recommendation of contract viability/probability

1. Recruiting and Compensation

1. Employment Types
   1. Full-time
   2. Part-time
   3. Casual
   4. Daily/weekly hire
   5. Probationary
2. Determine the best option to increase productivity while minimizing prolonged or unexpected expenses
3. Business Entity
4. Discuss the different business entities available
   1. Sole Proprietor
   2. Partnership
   3. Corporation
   4. Limited Liability Company
5. Compare and contrast benefits of an LLC v. other archetypes
6. Conclusion
7. Review all previously discussed information and develop a coherent vision
8. Discuss aforementioned vision as it relates to thesis statement
9. CHAPTER 5: Understanding and Choosing a Legal Structure. (2012). Women's Small Business Start-Up Kit (9781413317220), 149-186.

10. Pakroo, P. H. (2014). CHAPTER 1: Choosing a Legal Structure. Small Business Start-Up Kit, 7-28.