or advice. Sometimes, sole proprietors need assistance with certain business functions. For instance, Network Solutions offers web services for small and medium-sized businesses that want to grow their online presence. The company offers website hosting, or storage space and access for websites, as well as tools to help build a website and online marketing services. In the end, however, it is up to the business owner to make the final decision in all areas of the business. Lack of Continuity. The life expectancy of a sole pro- prietorship is directly linked to that of the owner and his or her ability to work. The serious illness of the owner could result in failure of the business if competent help cannot be found It is difficult to arrange for the sale of a proprietorship and, at the same time, assure customers that the business Sole proprietorships often have greater difficulty attracting talented will continue to meet their needs. For instance, how does employees because of competition from over companies one sell a veterinary practice? A veterinarian's major asset Monkey Business images/Slutterstock.com is patients. If the vet dies suddenly, the equipment can be sold, but the patients will not necessarily remain loyal to the office. On the other hand, a veterinarian who wants to retire could take in a younger partner and sell the practice to the part of large corporations downsizing and outsourcing tasks has ner over time. One advantage to the partnership is that some of created renewed opportunities for small businesses to acquire the customers are likely to stay with the business, even if owner well-trained employees. ship changes. Taxation. Although we listed taxation as an advantage for sole Lack of Qualified Employees. It is sometimes dim proprietorships, it can also be a disadvantage depending on the cult for a small sole proprietorship to match the wages and proprietor's income. Under current tax rates, sole proprietors pay benefits offered by a large competing corporation because a higher marginal tax rate than do small corporations on income the proprietorship's profits may not be as high. In addition, of less than $75.000. However, sole proprietorships avoid the there may be less room for advancement within a sole pro double taxation of corporate and personal taxes that occurs with prietorship, so the owner may have difficulty attracting and corporations. The tax effect often determines whether a sole pro retaining qualified employees. On the other hand, the trend prietor chooses to incorporate his or her business. THIS COMPANY'S SOCIAL RESPONSIBILITY CASCADES OVER EVERYTHING IT DOES B corporations are not your typical corpo things differently. He welcomed regulation, successor Cascade Engineering has become Oration. The stands for beneficial. It is using it as motivation to improve processes the world's second largest certified benefit a certification awarded by the nonprofit B Cascade has spent the past 15 years helping corporation Lab to signal that member companies con- customers reduce o use and eliminate waste form to a set of transparent and comprehen Keller reduced Cascade's own emissions by Discussion Questions sive social and environmental performance 20 percent in a five-year period. Unlike many 1. What are some of the benefits from the Standards manufacturers, Cascade supports a switch to Corporate form of organization that cas Founded in 1973, Michigan-based Cascade renewable energy cade Engineering likely receives? Engineering is a corporation that achieved B Cascade has made the decision to make 2. How hos Cascade benefited stakeholders corporation certification Cascade manutec sustainability the focus of its strategy in prod. through its corporation status? tures plastic products. Most manufacturers uct and business development. To further this abhor regulation and would feel constrained goal, the company produces its own alterne 3. Do you think a legal corporation can be by the performance standards of a corpo tive energy products. Under Keller's initial both financially profitable and socially ration Fred Keller, Cascade's founder, sow direction and the continued leadership of his responsible? 78 PART 2 Starting and Growing a Business