This is an open book assignment. You may use whatever materials you wish to answer the questions that follow. However, students must complete the assignment on their own.

Students are reminded of the Medicine Hat College's policy regarding Academic Dishonesty.

Read the following scenario and answer ALL questions that follow.

Dave is an engineer by trade and works for a multinational construction company. During his spare time he has been developing a specialized tool called a widget. Most of this development has occurred in the garage of Dave's house; but occasionally he has used some of his employers tools and his workspace to develop tool. Dave's tool is innovative and unique and will revolutionize the construction business.

Dave is planning on setting up a business to manufacture and sell his widget to the broader Canadian market place. Initially, Dave wants to start small and test the waters with offering his widget for sale. Eventually, Dave is hoping that his widget business will become very successful and grow into a business that he could potentially sell and make millions of dollars from.

While Dave's widget is innovative and unique, it is also potentially dangerous and if used incorrectly could lead to significant issues and unknown risks.

At this stage, Dave is planning on operating the business on his own and will likely use funds that he recently inherited from his uncle's estate to fund the initial business setup. Dave is also aware that if his business becomes successful, he will likely need to attract other funders or partners to help him fund the future growth of the business.

Dave also anticipates needing to hire employees fairly quickly in order to get his business up and running. He also recognizes that he will likely need to establish a marketing and sales department to sell the business products. Dave is not a "sale guy" and knows that marketing and sales are beyond his abilities.

Dave has had a lot of "coffee shop advice" from many different people about what he needs to do to set up a business and what type of business organization her should be using for his business. In particular, Dave is aware of three main types of business organizations: sole proprietorship; partnerships; and corporations.

Dave has come to you for advice and would like the following questions answered in a very thorough, well thought out and organized way.

1. Please explain to Dave the advantages and disadvantages of the three main types of business organizations.

2. Based upon the information that Dave has provided, which type of business organization is best suited for his needs and why?

3. Dave is very concerned that if he hires employees, they will have access to the business' confidential information. What can he do to ensure that the business' confidential information remains private?

4. Dave is also concerned that his prior employer may take issue with his development of the widget; does he have anything to worry about? What more information may you need to answer this question for Dave? What can he do to protect his property interest in the widget and protect his ability to manufacture and sell his widget?