Which Business Structure: A Practical Application Scenario

The purpose of the practical application scenario below is (1) to understand the critical thinking that is used in the selection of the best business structure for a company and (2) to discuss potential ethical issues that a company may face in day-to-day business operations (Lee, n.d., "Topic 11.1 Foundational Ethical Philosophies Guiding Business")?

Practical ApplicationScenario:

Adam and Laura wish to open a pet grooming shop called Dazzling Doggies Day Spa. Laura's mother, Beth, would like to contribute to the startup costs in exchange for a share of profits, but she does not want to participate in the daily operations of the business. She also does not want to have any personal liability in the business (University of Phoenix, n.d.).

Critical Thinking Questions:

Question 1: Which business structure is best for Dazzling Doggies Day Spa and why?

Question 2: Unknown to Laura and Beth, Adam begins to use Dazzling Doggies Day Spa's checking account to pay all his personal bills. Are his actions ethical and which of the four ethical philosophies best describes Adam's actions?

References

Lee, K. (n.d.) Business law (2^nd ed.). MyEducator.

University of Phoenix. (n.d.). Practical application scenario. Entity selection, formation, & governance. ETH321T-Ethical and Legal Topics in Business. Blackboard Ultra. https://vle.phoenix.edu/ultra