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Using the following criteria, select the best business form for your scenario. Criteria: Startup process: automatic vs. filing requirements Financing Ownership/Management {control} Limitations on Liability
Using the following criteria, select the best business form for your scenario.
Criteria:
Startup process: automatic vs. filing requirements
Financing
Ownership/Management {control}
Limitations on Liability {still need business insurance}.
Continuity of life
Taxes
Your choices are:
a. Sole Proprietorship
b. Joint Venture
c. Partnership
d. Limited Partnership
e. Limited Liability Company
f. Corporation
Freda is a stay-at-home mom whose youngest child just started first grade. Freda would like to earn extra money while her kids are at school. She wants a flexible schedule because she likes being available to volunteer at the school when needed. While searching the Internet, Freda discovers Sugar-Girl, a cosmetic company that will sell her cosmetics at a reduced rate and allow her to resell them to friends and neighbors for a maximum profit of 15%. Any cosmetics Freda does not sell after six months may be returned for a full refund. After doing her due diligence, Freda learns that the company is very respected, the product (which is not tested on animals) has a good reputation, and that 54% of the sales people, report an annual profit margin of 12.5%. Freda would like to become a Sugar-Girl. What type of business structure would be best for Freda and why?
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