Question 1:

These are the following cases and you have to determine the form of business ownership or ownership strategy that each case depicts. You need to write a detailed reason for your choice.

Specify in each paragraph what is appropriate ownership for it?

Limited liability company (LLC) Close/private corporation

General partnership Sole proprietorship

Limited liability partnership (LLP) Nonprofit corporation

C corporation S corporation

Limited partnership Piggyback franchise

Product trade-name franchise Joint venture

Multi-level marketing Business-format franchise

Licensing

14. As a successful businessperson, Ben wanted to take the next step to expand his mid-size company internationally. He knew he didnt have enough capital and know-how to get into foreign markets. He contacted a former business associate who owned a garment manufacturing company in Australia. Together, they worked out a deal that would benefit both of their companies in a relationship that would last no longer than one year.

15. Tom purchased franchise rights to open a Maggie Moos ice-cream shop. Since this was his first business ownership venture, he decided to take advantage of the business proposition that a local merchant offered. The merchant owned a discount store in the center of town and asked Tom if he would like to open his business in the discount store. The arrangement proved beneficial to both Tom and the store owner.

11. Jake loves science, particularly chemistry. While experimenting with a chemical combination for a school science fair project, he discovered that the concoction removed stains from virtually any fabric or fiberfrom carpets to delicate linens. He knew that he had stumbled onto a great invention. He filed paperwork to get the product patented. He didnt have the capital, equipment, or time to make the product, so he sold a manufacturer the right to produce and distribute the product. The manufacturer paid Jake a percentage of the annual profits.

12. Annette started working as a repairperson in a local appliance store when she was in school. She loved the work and was promoted to service manager within a few years. Annette had always wanted to own her own business, and she started to research ways to achieve her goals. The next year, Annette opened her own store, Annettes Appliance and Repair Shop. Her store is a distributor for Whirlpool washers and dryers.

13. Gina loves food almost as much as she likes to make money. When Gina knew that she wanted to own her own business, she decided to open a restaurant. She didnt know exactly what was involved and wanted some guidance as she developed her business. She contacted a nationally known restaurant chain and purchased the right to operate her restaurant under the restaurants trade name.

10. Abby attended a party at a friends house. At the party, a sales representative presented a line of high quality, decorative baskets in an array of shapes and sizes. Abby has been a collector of the baskets for a long time. When the sales representative approached her about becoming a representative for the company, Abby told the representative that she would be very interested in becoming a distributor