Unit $1$

Forms of Business Organization

Sarah and Matthew's successes have enabled them to accumulate $$150,000$ in equity in their home and

$$95,000$ in investments as well as a $20$XX GMC $44$ and tools that have fair market values of $$38,000$ and

$$18,000$ respectively. They plan to use some of these assets as investments toward the start$-$up of Mi

Casa.

Matthew and Sarah have worked diligently for the last two years formulating the marketing portion of a

business plan which supports the viability of this. They strongly wish to protect the equity that they

have in their home.

Sarah plans to perform all the administrative tasks, contract estimating$/$quoting as well as delivery of

materials to each work place or site as required. Matthew will supervise the employees and sub$-$

contractors and perform the skilled carpentry tasks. The work$-$force will be expanded as required in the

future.

Required

Write a one to two$-$page report to your instructor to discuss:

The pros and cons of the most popular forms of business organizations: sole proprietorship,

partnership and corporation. Include at least three pros and cons for each type of business.

Select the legal form of business that will meet the objectives of the owner$($s$)$ and make a

recommendation to the Simmons'.

See your instructor for submission requirements.

Con's