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It is often said that a small business has unlimited liabilitybecause it is a sole proprietorship even if the owner incorporates.Explain why you agree or disagree with this statement. Be sure toprovide support for your statements.

If any sources are used please provide citation. Thank You

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Patrina Schowalter
Patrina SchowalterLv2
28 Sep 2019

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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.

You are the manager of Acme Fireworks, a fireworks retailer who sells fireworks, puts on ground display fireworks, and large aerial display 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 proprietorship, and the owner has never changed the entity. The owner has informed you that the company has received inquiries from several large businesses wondering if the company could create several fireworks displays on a regular basis. The owner told the inquirers that the company could fill such display orders, and a price per display was agreed upon. It was discussed that most of the cost for a fireworks display is for skilled labor, insurance, and the actual service of setting off the fireworks. No other details were discussed. The owner is anticipating that new employees will need to be hired, but he is worried that if the large orders for fireworks displays 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 he does not know what entity to form or how to form it.

The owner has asked you to do the following:

  • Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code (UCC), and explain why.

  • Analyze whether the owner formed a contract with the businesses, and apply the five essential elements of an enforceable contract.

  • Explain the potential personal liability to Acme Fireworks if a spectator is injured by a stray firework from a fireworks display.

  • Discuss the different employment types and relationships relevant to agency law, and analyze the advantages and disadvantages of each type specific to Acme Fireworks.

  • Explain why Acme Fireworks should not operate as a sole proprietorship. Recommend a new business entity, and provide 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.

250 Words document

A company’s financial statements consist of the balance sheet,income statement, and statement of cash flows. Choose the financialstatement that you consider most important to a business leader inSaudi Arabia.

Search the internet for an academic or industry-related article.Select an article that relates to your financial statement choiceand why you believe it is the most important for business leadersand investors in Saudi Arabia.

For your discussion post, your first step is to summarize thearticle in two paragraphs describing what you think are the mostimportant points made by the authors (remember to cite theinformation, as appropriate). For the second step, include thereference listing with a hyperlink to the article. Please note, donot copy the article into your post and limit your summary to twoparagraphs. Let me know if you have any questions. Enjoy yoursearch.

Be sure to support your statements with logic and argument,citing all sources referenced. Post your initial response early,and check back often to continue the discussion. Be sure to respondto your peers’ posts as well.

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