3.Big Burping Burgers is a successful and well-known fast-food operation run by Rory Rib. Rory started as a sole proprietor, and he still runs the business that way because it gives him total control and oversight of the business. The store is always busy. It is open long hours and has many employees and a broad customer base. People come from out of town to try Rory's burgers. Rory is also innovative and has developed burgers made with products other than beef that appeal to customers across cultural lines. He is thinking about expanding his business.

a.With respect to the form of business organization Rory is using, is there anything he should do before he considers expansion options?

b.For expansion, what are the pros and cons of franchising Big Burping Burgers?

c.What other forms of business organization should he consider for expansion?

4.Well, it happened. Big Burping Burgers is in trouble. At one of its new branches, an employee mixed a batch of burgers that contained bacteria. The burgers were not cooked enough to kill off the organisms. As a result, 40 people became gravely ill, and four of them died. The municipal health unit shut the location down. The business is going to be fined a large sum of money, and there are civil suits by victims whose combined claim is in the millions of dollars.

What will the financial consequences be for Rory if:

a.the branch is a franchise and Rory is the franchisor?

b.the business is a sole proprietorship?

c.the business is a partnership?

d.the business is a corporation?